CoStar Group, Inc. announced on October 27, 2026, that it has entered into an Agreement and Plan of Merger to acquire Vexcel Group, Inc. The transaction involves CoStar Realty Information, Inc. and Velocity Merger Sub, Inc. merging with Vexcel. Vexcel is described as a provider of comprehensive aerial imagery and geospatial data programs.
The deal is valued at $730 million in cash, subject to customary working capital and other post-closing adjustments. The acquisition is not subject to approval by CoStar Group’s stockholders or any financing conditions. Completion of the transaction is contingent upon the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other foreign regulatory laws. It is also subject to the absence of any government orders prohibiting the deal and the accuracy of the parties' representations and warranties.
CoStar Group also reported its financial results for the quarter ended September 30, 2026. Revenue for the quarter was $952 million, representing a 14% increase compared to the same period in the prior year. Net income for the third quarter of 2026 was $74 million, a significant increase of $105 million year-over-year. Adjusted EBITDA for the quarter was $229 million, which the company notes is double the amount reported in the prior year period.
Regarding future guidance, CoStar Group raised its full-year 2026 Adjusted EBITDA outlook to a range of $820 million to $840 million. The company also increased its revenue guidance for 2026 to a range of $3.75 billion to $3.77 billion, representing approximately 16% year-over-year growth at the midpoint.
