CoStar completes $1.6B acquisition of Matterport

Arlington County-based real estate data and analytics company CoStar Group announced Friday that it had completed the acquisition of Sunnyvale, California-based 3D digital twin technology company Matterport.

CoStar says the $1.6 billion acquisition, which was announced last year, will allow the company to accelerate the adoption of AI-driven digital twin technology across the global real estate landscape and digitize the real estate industry.

“Matterport’s cutting-edge 3D capture and AI-powered property insights have already transformed how residential and commercial properties are marketed and experienced,” CoStar founder and CEO Andy Florance said in a statement. “By integrating Matterport’s groundbreaking digital twin technology with our vast property data and online marketplaces, we are creating an unparalleled solution for buyers, sellers, and renters to explore properties with greater depth and insight than ever before.”

Matterport announced last week it had a total revenue of $169.7 million for fiscal year 2024, up 8% from the previous year. The company’s 3D digital twins enable property owners, buyers and renters to experience properties with immersive accuracy from anywhere in the world. Its spatial data library has over 14 million spaces and 50 billion square feet digitized across 177 countries.

“This is an exciting milestone for Matterport, as we join forces with CoStar Group to accelerate our impact on the global real estate industry,” said RJ Pittman, chairman and CEO of Matterport, in a statement. “From residential to commercial, our technology is redefining how residential and commercial spaces are discovered, marketed, and transacted. With CoStar Group’s scale and resources, we can fast-track innovation, deepen AI-driven analytics, and deliver even greater value to our customers worldwide.”

According to CoStar, there are more than 4 billion residential and commercial buildings on the planet, but most of these spaces remain largely undigitized. The company says the need for accurate, data-driven insights “has never been greater.”

CoStar says it and Matterport are committed to further investing in AI, computer vision and machine learning to improve property analytics, optimize operational efficiency and broaden the use of digital twin technologies throughout the real estate industry.

Last week, CoStar announced plans to fill more than 1,000 new positions, including 500 new Homes.com sales professionals. However, the company also said it planned to eliminate roles from efficiencies gained by using AI and anticipates reducing some roles during normal annual performance management. The company did not say how many would be laid off.

CoStar established a global operations center in Richmond in 2016 and has since grown that office to over 2,350 employees, becoming one of the area’s larger employers. CoStar announced it will complete a 1-million-square-foot campus development along the James River in May 2026 and that the campus will house 3,500 employees. In November 2024, the company announced plans to move its headquarters from Washington, D.C., to Arlington.