AAA CoStar holds on to Homesnap in $250m deal

CoStar holds on to Homesnap in $250m deal

Homesnap, a US-based property search engine developer backed by newspaper publisher AH Belo, has agreed to be acquired by real estate information provider CoStar Group in a $250m cash deal.

Founded in 2008 as Sawbuck Realty, Homesnap has built an online real estate database that includes listings for properties from more than 250 multiple listing services – groups of real estate brokers that collate portfolio updates.

The company claims to have more than 1.1 million real estate agents signed up to the professional edition of its platform, representing more than 90% of residential agents in the US.

CoStar will leverage the acquisition to extend its property coverage, particularly in the residential segment, increasing its total listings from nearly 1.4 million to more than 2.6 million.

John Mazur, Homesnap’s chief executive, said: “We are excited to join CoStar Group and leverage their 30 years of knowledge and experience in property data, software and marketing to take advantage of this significant growth opportunity.”

Homesnap last raised money in a $14m series B round in early 2018 led by growth equity firm Updata Partners and backed by investors including Moderne Ventures, bringing its overall funding at the time to $32m.

Revolution Ventures and Robert Stewart had supplied $3.5m to close Homesnap’s second funding round in 2012, adding to a $2m series A round led by AH Belo three years earlier.

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