CoStar Group, Inc., the leading provider of commercial real estate information, analytics and online marketplaces, announced today that it has signed an agreement to acquire RentPath’s business for $588 million in cash, in connection with RentPath’s recently announced Chapter 11 bankruptcy.
RentPath’s primary service is digital marketing for rental properties through a network of Internet listing websites including Rent.com, ApartmentGuide.com, Rentals.com and Lovely.com.
The RentPath network of websites generated over 21 million monthly visits and almost 9 million monthly unique visitors in 2019, according to comScore, and had approximately 28,000 properties advertised on its network as of December 2019.
“RentPath has a 30-year track record of outstanding service to the multifamily industry, developing thousands of meaningful customer relationships,” said Andrew C. Florance, founder and CEO of CoStar Group.
Following restructuring in bankruptcy, CoStar Group expects the combined companies to benefit from synergies and plans to invest in building RentPath’s online brands and traffic to provide improved quantity and quality of lead flow to advertising clients.
“We believe that RentPath’s talented and experienced employees will become valuable contributors not only to our Apartments.com network of sites but across all of our marketplaces.” Florance said.
The closing of the transaction is subject to various conditions, including approval by the bankruptcy court and regulatory approval, according to the release.