Commercial property data firm CoStar and a private equity group led by Warburg Pincus are the final bidders trying to acquire real estate data provider CoreLogic, Bloomberg reported, citing people familiar with the matter.
CoreLogic is evaluating the offers and is expected to decide in the coming weeks whether to proceed with a sale, the sources told Bloomberg. No decision has been made, and CoreLogic may choose to remain independent, they said.
Neither CoStar, Warburg Pincus or CoreLogic would confirm the story to Bloomberg.
CoreLogic shares (Nasdaq:CLGX) rose as much as 6% on Thursday, giving the firm a market cap of about $6 billion. CoStar shares rose 1.1%, putting its total value at $36 billion.
Last month, Bloomberg reported that CoStar was interested in taking over CoreLogic at a price of $77 to $83 per share, which would value the company at nearly $9 billion.
CoStar, originally a provider of commercial property data to investors, mortgage banks and others, also owns several real estate marketplaces, including Apartments.com, LoopNet and auction platform Ten-X. Last month, for the first time, it entered the residential for-sale market as the FTC greenlighted its plan to acquire HomeSnap for $250 million.
If CoStar prevails, CoreLogic would be the firm’s largest ever acquisition and a much more serious gambit in the for-sale residential sector. CoreLogic claims a trove of 4.5 billion property documents spanning 50 years of history. The company serves more than 1.2 million real estate agents, 9,000 mortgage banks and lenders, 300 capital markets and 21 federal agencies, according to its website.
CEO Andrew Florance makes no secret of his admiration of CoreLogic, whose business resembles CoStar’s core property-intelligence segment. In fact, Florance told Inman that CoreLogic’s property-sales search tool is based on code that Florance wrote in his early 20s.
Warburg Pincus is a private equity firm with $56 billion in assets under management, and a portfolio of more than 190 companies around the world in various stages of development. Its information and communication technology investments include Avaya, Bharti Tele-Ventures, Harbour Networks, NeuStar, PayScale, and Telcordia.