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WASHINGTON - CoStar Group (NASDAQ: NASDAQ:CSGP), a prominent provider of online real estate marketplaces and analytics, announced the acquisition of Visual Lease, a leading software platform for lease management and accounting. The union is set to bolster CoStar's Real Estate Manager offerings, extending its capabilities to a broader customer base.
Visual Lease, established in 1996, has been serving over 1,500 organizations with its integrated lease management and accounting platform. The software assists various sectors, including business services, construction, healthcare, manufacturing, and retail, in managing both leased and owned assets.
The acquisition is poised to deliver enhanced lease management and accounting solutions by combining Visual Lease's expertise with CoStar's extensive data and analytics. This move aims to improve the user experience for customers of both platforms by providing a unified, user-friendly lease management system.
Andy Florance, Founder and CEO of CoStar Group, expressed his anticipation for the acquisition, stating that it aligns with the company's mission to integrate all lease management portfolio functions into one platform. He also highlighted the potential for new capabilities and growth both nationally and internationally.
Marc Betesh, Founder & Executive Chairman of Visual Lease, shared his enthusiasm for the partnership, emphasizing the opportunity to elevate their vision. Robert Michlewicz, CEO of Visual Lease, echoed these sentiments, noting the acquisition as a testament to their team's dedication and a step to accelerate growth and service enhancement.
Citi acted as CoStar Group's exclusive financial advisor, with Milbank LLP providing legal counsel. Visual Lease's financial advice came from Shea & Company, LLC, and Latham & Watkins LLP served as its legal advisor. The company is backed by Spectrum Equity and Growth Street Partners.
CoStar Group plans to divulge further details about the Visual Lease acquisition during its earnings conference call at 5:00 pm ET on October 22, 2024.
This strategic move is expected to create a more comprehensive service offering in the real estate management sector, positioning CoStar Group to continue its expansion and innovation in the marketplace. The information regarding this acquisition is based on a press release statement.
In other recent news, CoStar Group, Inc. reported third-quarter earnings that surpassed analyst estimates, with adjusted earnings per share of $0.22, exceeding the consensus estimate of $0.16. The company's revenue grew 11% year-over-year to $693 million, slightly under analyst projections of $695.94 million. However, the company's fourth-quarter guidance came in below expectations, expecting an adjusted EPS of $0.21-$0.23, lower than the consensus of $0.24, and revenue guidance of $693-703 million, missing analyst expectations of $713.9 million.
The company also raised its full-year 2024 adjusted EBITDA guidance to a range of $205-215 million, an increase of 5% at the midpoint from its previous forecast. CoStar's two billion-dollar run rate businesses, Apartments.com and CoStar, continue to show double-digit revenue growth.
Despite these developments, CoStar's shares fell in after-hours trading. These are the recent developments for CoStar Group, Inc.
InvestingPro Insights
CoStar Group's acquisition of Visual Lease aligns with its strong market position and financial health, as reflected in recent InvestingPro data. With a market capitalization of $31.58 billion, CoStar Group stands as a prominent player in the Real Estate Management & Development industry, an InvestingPro Tip that underscores the strategic importance of this acquisition.
The company's solid financial footing is evident from another InvestingPro Tip, which notes that CoStar holds more cash than debt on its balance sheet. This financial stability provides the company with the flexibility to pursue strategic acquisitions like Visual Lease, potentially enhancing its market position and service offerings.
CoStar's revenue growth of 11.99% over the last twelve months, as reported by InvestingPro, suggests a robust demand for its services. This growth trajectory could be further accelerated by the integration of Visual Lease's capabilities, expanding CoStar's reach in the lease management and accounting software market.
It's worth noting that InvestingPro has identified 13 additional tips for CoStar Group, offering investors a more comprehensive analysis of the company's performance and outlook. These insights, available through the InvestingPro product, could provide valuable context for understanding the potential impact of the Visual Lease acquisition on CoStar's future growth and market position.
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