CoStar buys ForRent for $385 million US
12 Sep 2017
The deal further consolidates CoStar’s impressive hold on the classified ad business for rental properties. CoStar also owns and operates Apartments.com, ApartmentFinder, and ApartmentHomeLiving, in addition to LoopNet for commercial properties.
ForRent lists properties on four different websites: ForRent.com, After55.com, CorporateHousing.com, and ForRentUniversity.com. ForRent had a total of about 17,000 properties advertised across its websites as of June 2017, generating an average of 3.5 million unique monthly visits, according to the company.
ForRent has headquarters in Norfolk, Virginia and 475 employees located in 38 offices around the United States.
ForRent advertisers’ properties will be featured on Apartments.com after the transaction closes. “For the investors and lenders relying on CoStar for multi-family information and analytics, we expect the addition of properties and data from ForRent will further strengthen our information offering,” said CoStar CEO Andrew Florance in a news release.
The rental market comprises about 110 million renters in the U.S., Florance added. “They spend just under half a trillion dollars a year on rent, representing one of the fastest growing consumer market segments.”
ForRent.com will remain a separate brand from Apartments.com.
ForRent is expecting 2017 revenue of $100 million U.S.. CoStar says it expects “significant operating efficiencies” after the acquisition is complete. CoStar predicted additional revenue of $75 million to $85 million after the client bases are merged and “certain non-core services” are discontinued.
The transaction is expected to close in the fourth quarter of 2017.
We will have more on the acquisition in the next issue of Classified Intelligence Report.