Commercial real estate data provider CoStar Group Inc. said it had withdrawn its bid to buy CoreLogic.
CoStar 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,” said the company in a statement.
In February, private equity firms Stone Point Capital and Insight Partners had agreed to acquire CoreLogic for $80 per share in cash, representing an equity value of approximately $6.0 billion. After this agreement CoStar had made a superior proposal to acquire 100% of the equity interests of CoreLogic for $95.76 per share.
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“With interest rates moving up, now is not the time for us to aggressively buy into the residential mortgage market,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group.
“We wish to congratulate Stone Point and Insight Partners on their successful bid to acquire CoreLogic. 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,” added Florance.
