Matterport, Inc. (NASDAQ:MTTR) shares are trading lower in the premarket session on Tuesday. The stock skyrocketed over 175% yesterday.

The company inked a definitive agreement with CoStar Group, Inc (NASDAQ:CSGP) to be acquired in a cash and stock transaction valued at $5.50 per share, representing an equity value of approximately $2.1 billion and an enterprise value of approximately $1.6 billion.

The deal is based on the closing price for CoStar Group common stock on April 19, 2024. 

Matterport stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock.

As of December 31, 2023, CoStar Group had $5.215 billion in cash and equivalents. 

“With CoStar Group’s expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide,” RJ Pittman, Chair and CEO of Matterport, said.

The transaction, which is expected to be completed during the year, is subject to the approval of Matterport stockholders.

Directors, Officers and certain other stockholders of Matterport, representing approximately 15% of Matterport’s fully diluted shares, have entered into voting agreements to support the transaction. 

The transaction is subject to a 10% symmetrical collar based on a CoStar Group share price of $86.02 as the midpoint.

Price Action: MTTR shares are trading lower by 1.46% to $4.73 premarket on the last check Tuesday. CSGP shares closed higher by 1.25% to $85.31 on Monday.

Image sourced from Shutterstock