Wednesday, April 27, 2011

CoStar Group Inc merging with LoopNet ( NASDAQ:LOOP ) !!

Loopnet Inc 
CoStar Group, Inc. announced the signing of a definitive agreement to acquire LoopNet, Inc ( NASDAQ:LOOP). Stock of the company Loopnet Inc ( NASDAQ:LOOP) had jumped 26 % to close to $ 18.11 i after hours trading session, while stock of the CoStar Group Inc ( NASDAQ: CSGP) closed 1.88% up to $61.38 in regular trading session.

Pursuant to the merger agreement, LoopNet shareholders will receive $16.50 in cash and 0.03702 shares of CoStar Group common stock for each share of LoopNet common stock, representing a total equity value of approximately $860 million and an enterprise value of $762 million. The boards of directors of both companies have unanimously approved the transaction which is expected to close by the end of 2011. 

The Company also announced that it has received a commitment letter from J.P. Morgan for a fully committed term loan of $415 million and a $50 million revolving credit facility, of which $37.5 million are committed, which will be available, subject to customary conditions, to fund the acquisition and the ongoing working capital needs of CoStar and its subsidiaries following the transaction.

( Source: Reuters )


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