CoStar to Buy Aerial Imagery Firm Vexcel, Adding AI Data Layer
CSGP sits 23% above its 52-week low of $25.894.
Summary
CoStar announced it will acquire Vexcel, which it describes as the world's largest survey-grade high-resolution aerial imagery program, for approximately $730 million in cash, and fold that imagery into its search and discovery products with tens of billions of new AI-derived data fields. Vexcel generated revenue of more than $140 million in the last 12 months. Erik Jorgensen and the Vexcel leadership team will continue to lead the business, which will keep operating its data program under the Vexcel brand. CoStar expects to fund the acquisition from cash on hand and its existing revolving credit facility, and expects the deal to add to adjusted EPS in the first full year of ownership. The deal extends CoStar's pattern of bolt-on data acquisitions, following the $800 million Zonda purchase completed in August, and deepens the proprietary data moat behind its marketplace and Homes.com.
At the time of this announcement, CSGP was trading at $31.95 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $13B. The 52-week trading range was $25.89 to $79.08. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.