CoStar Group, Inc. (CSGP), a leading provider of commercial real estate information, analytics and marketing services, announced the pricing of a public offering of three million common shares at $160.00 per share. The offering is expected to generate net proceeds of $460.1 million.
The company has granted the underwriters a 30-day option to buy up to 450,000 additional shares of it common stock. In case the underwriters exercise their option to buy additional shares in full, CoStar expects to raise $529.2 million, after accounting for underwriting discounts and commissions, and other projected offering expenses. The offering is expected to close on or about Jun 11, 2014, subject to customary conditions.
The present offering represents an upsizing of the company’s previously announced stock offering of two million shares. JPMorgan Chase & Co. (JPM), Wells Fargo Securities, The Goldman Sachs Group, Inc. (GS), BofA Merrill Lynch, Citigroup Inc. (C) and SunTrust Robinson Humphrey will be the joint book-running managers of the offering.
CoStar intends to use the net proceeds from the stock offering to finance all or part of the expenses associated with any future strategic acquisitions. The funds may also be used for general corporate purposes, such as to meet the company’s ongoing working capital requirements as well as to finance its operational growth.
After acquiring Apartments.com in Apr 2014 and LoopNet in Apr 2012, CoStar is on the look out for further inorganic growth opportunities. The company is focused on seamlessly aligning and integrating Apartments.com into its operations to unlock the full potential of he combined companies’ robust operational network. CoStar expects the acquisition to result in significant synergies and generate sustainable revenue and earnings growth, going forward.
Costar presently carries a Zacks Rank #3 (Hold).
Read the Full Research Report on C
Read the Full Research Report on GS
Read the Full Research Report on CSGP
Zacks Investment Research
- Personal Investing Ideas & Strategies
- Investment & Company Information