Business
CoStar Group to Acquire Zonda, the Leader in New Home Data, Analytics, and Online Marketplaces
CoStar Group to Acquire Zonda, the Leader in New Home Data, Analytics, and Online
About this update from Costar Group, Inc.
[{"type":"text","content":"\nCoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics across the property markets, today announced that it has entered into a definitive agreement to acquire Zonda, a leading provider of new home construction data, homebuilder software, and residential real estate marketplaces, for $800 million in cash.\n\n\nZonda serves more than 3,000 customers across the homebuilding ecosystem, including many of the largest residential builders, developers, suppliers, and lenders in North America. Its platform delivers end-to-end solutions spanning land acquisition, development planning, homebuilding analytics, construction forecasting, community marketing, operational workflow management, and online new home marketplaces. Zonda is an attractive B2B business with strong profit margins. The majority of its revenue is subscription-based, with an impressive 104% net customer retention.\n\n\nAt the core of Zonda is a proprietary, lot-level database covering new home communities, land development activity, construction status, home sales, and builder operations. This data and the software built around it are deeply embedded in builder workflows and are widely used to support underwriting, land strategy, capital allocation, development planning, forecasting, and sales operations across the industry.\n\n\nZonda also operates NewHomeSource and Livabl, two leading online new home marketplaces in the United States and Canada. Top homebuilders contribute listings directly to these marketplaces, giving buyers broad visibility into new home inventory across the development ecosystem. Zonda’s platforms offer comprehensive listing experiences — including floor plans, virtual tours, pricing, incentives, and community details — designed to guide buyers from early research through purchase. Because these marketplaces feature new construction exclusively, they give builders highly targeted consumer marketing, lead generation, and merchandising — uncluttered by resale inventory.\n\n\nAccording to the Census, the annual value of new residential construction in the U.S. approaches $1 trillion - a market materially larger than the annual rent rolls of the institutional apartment and office sectors that CoStar Group has so successfully monetized.\n\n\nCoStar Group believes Zonda's builder relationships...