CoStar Group is further delving into the residential data business.
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The real estate data giant has reached a deal to acquire Zonda, a provider of residential construction and sales data, for $800M in cash, CoStar announced Friday. It is set to acquire Zonda from private equity firm MidOcean Partners.
The deal is expected to close in the second half of the year, contingent on regulatory approvals, according to CoStar.
“This acquisition extends CoStar Group's leadership into a major new segment of the real estate industry and strengthens our ability to provide clients with comprehensive information solutions across every major real estate segment,” CoStar Group founder and CEO Andy Florance said in a release.
The acquisition had been reported by multiple media outlets earlier this week.
Sara Badham, managing director at MidOcean, said in a separate press release the firm looks "forward to watching the Company's continued success as part of of CoStar Group."
CoStar, which has historically been focused on the commercial side of the real estate business, has received criticism over the past year from activist hedge fund investor Dan Loeb for its heavy spending on broadening its business into the residential sector.
The Arlington, Virginia-based company spent $156M to purchase Homes.com in 2021 and since then has invested billions on its website in an attempt to outpace other housing data giants.
The company has also faced monopoly allegations in recent years as it continues to seek acquisition opportunities.
Last month, a New York-based brokerage brought a class action against CoStar for allegedly violating antitrust law. The lawsuit claims the company controls 80% of the market for internet-based commercial real estate listings and accuses it of leveraging its position in the market to stifle competition.
Los Angeles-based Crexi is also pursuing antitrust allegations against CoStar. Last summer, an appeals court found that Crexi “plausibly” argued its claims. The Supreme Court declined to take up the issue in March, allowing the case to proceed.
In 2020, CoStar’s planned $588M acquisition of RentPath Holdings was foiled after the Federal Trade Commission asked for more details and later sued to block the merger.
That followed its $450M all-cash acquisition of hotel data company STR at the end of 2019. The company acquired Loopnet in 2012 and Apartments.com in 2014.
Zonda has also completed a slate of acquisitions in recent years. In early 2024, the company purchased Builders Digital Experience, which includes new construction home listings service NewHomeSource.com and home design platform Envision.
It acquired self-guided home tour company UTour in 2023 and digital home mapping firm Alpha Vision in 2022.
UPDATE, MAY 29, 10:05 A.M. ET: This story has been updated after the buyer and seller announced the deal in separate press releases Friday.
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