CoStar Group, which recently acquired OnTheMarket, has agreed a deal to buy Matterport, valued at $1.6bn (£1.29bn), as the firm looks to win listings and sell more properties by enhancing 3D virtual tours.

The deal implies a per-share value of $5.50 (£.4.42) and represents a premium of about 216% over Matterport’s last close of $1.74 (£1.40).

California-based Matterport, which was founded in 2011, makes 3D cameras for virtual tours of properties. It also offers a platform that allows users to upload and view the spaces they have scanned.

CoStar highlighted the value of Matterport virtual tours, noting that in March 2024 consumers spent more than 20% more time viewing an apartment listing on Apartments.com when these tours were available.

The firm’s CEO, Andy Florance, said: “The world has changed and today a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property.

“CoStar Group intends to support and invest in research and development opportunities to further develop Matterport’s spatial technology, including the application of AI and machine learning to extract information from the 3D spatial data library as well as using generative artificial intelligence to imagine and reimagine physical spaces.”

Matterport CEO RJ Pittman said this milestone acknowledges Matterport’s accomplishments in 3D digital twin technology and AI-driven property intelligence.

“With CoStar Group’s expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide,” Pittman said.

“Importantly, it offers Matterport’s stockholders the opportunity to participate in the value creation and future growth prospects of our combined efforts,” he added.

Matterport has about 440 employees and its 2023 revenue rose 16% from a year earlier to $158m (£127m).