CoStar Group Withdraws Offer To Acquire CoreLogic

(RTTNews) - CoStar Group Inc. (CSGP) said it withdrew its bid to acquire CoreLogic (CLGX) and terminated any further acquisition discussions, after CoreLogic rejected its increased buyout offer earlier on Thursday.

CoStar Group believed rising interest rates would negatively impact the outlook for the mortgage refinancing market. The rising interest rates caused valuations for residential property technology companies to decline significantly in recent weeks, which has changed CoStar's view of the value of CoreLogic.

On 1st March, CoStar Group submitted revised proposal to acquire CoreLogic. The revised proposal added $450 million or $6.00 per share in cash to previous all-stock offer.

As per the terms of the revised proposal, CoreLogic shareholders would receive $6.00 per share in cash and 0.1019 shares of CoStar Group common stock in exchange for each share of CoreLogic common stock, representing a value of about $90 per share based on CoStar Group's closing share price on February 26, 2021.

Earlier on Thursday, CoreLogic said it had not concluded that CoStar's updated proposal was a superior proposal as defined in its merger agreement with affiliates of Stone Point Capital and Insight Partner.

CoreLogic's board approved a definitive merger agreement on February 4 under which funds managed by Stone Point Capital and Insight Partners agreed to acquire all outstanding shares of CoreLogic for $80 per share in cash.

CoreLogic said Thursday that the merger agreement remains in full force and effect, and its board has not withdrawn or modified its recommendation that the stockholders of CoreLogic vote in favor of the approval of the merger, the merger agreement and the transactions contemplated thereby.