CoStar Announces Plans to Raise Funding in Wake of Pandemic

Amidst the slowly mending property market, a company has been able to keep its head above water through the entire ordeal. And that company isn’t letting up its efforts yet. 

Commercial real estate and proptech giant, CoStar, is looking to raise $1.25 billion. It recently announced the sale of common stock and said it would use some of the money to fund acquisitions and grow its business. 

CoStar’s current stock value is $24 billion, making it the largest commercial real estate data company in the US. It’s used over $1.2 billion on acquisitions since last November- this includes the most recent deal to buy transaction platform, Ten-X Commercial for $190 million.

CoStar’s revenue rose 19% during Q1 2020, even with the virus beginning its rampage across the globe. It wasn’t completely immune to the virus, itself, as net income was down from $85 million to $73 million year-over-year. 

With its steady success, the company wasn’t planning on ignoring the cries for help from those less fortunate. CoStar claimed in a statement that it had offered “thousands of companies relief,” though it is confident in the market bounce back.