Cash is King, CoStar Group (NASDAQ: CSGP) to acquire Zonda for $800 million in cash

CoStar Group Inc. (NASDAQ: CSGP) announced it has entered into a definitive agreement to acquire Zonda, a provider of new home construction data and residential real estate marketplaces, for $800 million in cash.

Zonda serves more than 3,000 customers across the homebuilding ecosystem, including residential builders, developers, suppliers, and lenders in North America. The company operates a subscription-based business model with 104% net customer retention and maintains a proprietary database covering new home communities, land development activity, construction status, home sales, and builder operations.

The acquisition includes Zonda’s online marketplaces NewHomeSource and Livabl, which operate in the United States and Canada. These platforms feature new construction listings exclusively, providing builders with targeted consumer marketing and lead generation services.

“Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “This acquisition extends CoStar Group’s leadership into a major new segment of the real estate industry.”