CoStar Snaps Up LoopNet in $890 Million Deal

The commercial real estate information company CoStar Group Inc. yesterday announced they were to land an $890 million takeover of the San Francisco-based LoopNet Inc. commercial property listings website.


LoopNet allows users to search for listed commercial properties via a map

LoopNet map. Image courtesy of Fallon Design

CoStar executives told gathered news reporters at a press conference that LoopNet’s focus on available commercial properties was compatible with the company’s market intelligence services.

“We managed to revolutionize the way industry professionals research real estate in the commercial sector, while LoopNet were responsible for revolutionizing commercial real estate marketing,” said CoStar president Andrew Florence.

“We believe that by combining our companies, the commercial real estate market can utilize the full advantages that the internet has to offer,” he concluded of the deal, which is expected to be completed later this year.

LoopNet lists commercial properties which are available for rent or sale

LoopNet listings. Image courtesy of Loopnet

CoStar hope that their takeover of LoopNet will allow them to increase their customer base to around 160,000 users.

There are almost 4.8 million users registered with LoopNet, which operates a subscription only information database. The company, which employees more than 300 people in both Monrovia and San Francisco, will continue to operate independently.


CoStar hope the LoopNet takeover will allow them to double their existing customer base

CoStar. Image courtesy of India Talkies

Richard Boyle, CEO and Chairman of LoopNet, said that “Both companies are at the cutting edge of their businesses with regards to innovation, and together we will be even stronger.”

Simpson Thatcher & Bartlett LLP acted as CoStar’s legal representative, while J.P. Morgan played the role of the company’s financial advisors during the deal.


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