CoStar Group has withdrawn its bid to acquire CoreLogic and terminate any further acquisition discussions. CoStar Group believes rising interest rates will negatively impact the outlook for the mortgage refinancing market.
Accordingly, these rising interest rates have caused valuations for residential property technology companies to decline significantly in recent weeks, which has changed CoStar’s view of the value of CoreLogic. “With interest rates moving up, now is not the time for us to aggressively buy into the residential mortgage market,” said Andrew Florance, founder and CEO of CoStar Group.
CoStar Group continues to believe that a strategic combination of CoStar and CoreLogic had the potential to create significant value for all shareholders, and that CoreLogic is an excellent company with a talented team. CoStar Group is committed, however, to maintaining its disciplined approach to valuation as it pursues strategic acquisitions.
“We wish to congratulate Stone Point and Insight Partners on their successful bid to acquire CoreLogic,” said Florance. “We thank the CoreLogic Board and management team for including us in the process and congratulate them on achieving a strong valuation for their shareholders.”