CoStar raises bid for CoreLogic to compete with Stone Point/Insight offer

CoStar Group Inc.
said Monday it has delivered a letter to the board of real estate data provider CoreLogic
revising the terms of its offer to acquire the company to make it a $17 a share improvement on the terms being offered by Stone Point and Insight, which had already bid for the company. Under the new terms, CoStar will offer CoreLogic shareholders $6 a share in cash, plus 0.1019 shares of CoStar for each share owned, equal to a value of about $90 a share, based on CoStar’s closing share price on February 26, 2021 and approximately $97 per share based on the latest 30-day volume-weighted average CoStar share price. “The new offer represents a $17 per share improvement over the Stone Point and Insight offer, which is equivalent to over $1.25 billion more in aggregate value,” CoStar said in a statement. “The Stone Point and Insight offer now represents a 6% discount to CoreLogic’s latest closing price of $84.66, while the CoStar Group offer represents a 15% premium and implies pro forma diluted ownership of approximately 16.2% in the combined entity and $450 million in cash for current CoreLogic stockholders.” CoStar said it expects the CoreLogic board to declare the latest offer to a superior proposal within 48 hours. CoreLogic shares were up 2% premarket and have gained 87% in the last 12 months, while the S&P 500
has gained 22%.

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