CoStar Proposes To Acquire CoreLogic For $6.9B, Beating Stone Point Capital's $80/Share Bid

CoStar Group Inc CSGP sent an unsolicited proposal to acquire CoreLogic Inc (NYSE: CLGX) in an all-stock transaction worth $6.9 billion.
Under the proposal, CoreLogic would receive 0.1019 shares of CoStar Group in exchange for each share of CoreLogic, translating into a purchase price of $95.76 per share. The purchase price signifies a 16.8% premium to Friday’s closing price of $81.99.
On February 4, CoreLogic’s board unanimously approved a merger agreement under which funds managed by Stone Point Capital and Insight Partners agreed to acquire CoreLogic for $6 billion or $80 per share in cash. Stone Point has reportedly secured $5.5 billion of debt to finance the acquisition.
The acquisition bid by CoStar represents $150-$250 million annual run-rate EBITDA synergies.
CoreLogic shares plummeted to $25 in March 2020 from $40 one year ago. The shares have gained 67% in the last year, with roughly 5% revenue growth.
The company had raised its outlook for 2020 and 2021 in December, following optimistic property tax processing, insurance & robust housing market prospects. The revenue and EPS estimates were raised multiple times by analysts in the last three months.
Price action: CLGX shares are up 7.56% at $88.19, and CSGP shares are down 4.22% at $900.06 on the last check Tuesday.