Matterport Joins Forces with CoStar in $1.6 Billion Acquisition

CoStar Group, a leader in commercial property data and real estate marketplaces, has completed its acquisition of Matterport, a San Francisco-based technology firm recognized for its 3D digital twin technology. The transaction, valued at approximately $1.6 billion, was finalized after receiving approval from the U.S. Federal Trade Commission. This strategic acquisition aims to integrate Matterport's cutting-edge 3D capture and AI-powered insights with CoStar's comprehensive property databases and marketplaces, enhancing user experiences by offering immersive property views. Matterport's technology, known for digitizing spaces using 3D cameras and proprietary software, has already transformed engagement in the real estate sector. Despite reporting ongoing financial losses, the synergy between CoStar and Matterport is anticipated to expedite innovation and broaden the use of AI and digital twin technologies globally. The acquisition aligns with CoStar's objectives to maintain its leadership in the market, even as competitors like Zillow offer similar 3D imaging benefits.