CoStar Group, Inc.
), 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.
), Wells Fargo Securities,
The Goldman Sachs Group, Inc.
), BofA Merrill Lynch,
) 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
Costar presently carries a Zacks Rank #3 (Hold).
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