CoStar Group Inc. has submitted a bid to acquire CoreLogic Inc. that would value the data company at about $6.7 billion, according to people familiar with the matter. CoreLogic rose as much as 6.8%.
CoStar made an all-stock offer worth about $86 per share, said the people, who asked to not be identified because the matter isn’t public. That works out to a 13% premium to CoreLogic’s closing share price of $76.18 on Monday in New York.
CoStar is competing with a group led by private equity firm Warburg Pincus in an auction for the company, the people said.
Warburg Pincus made an all-cash bid worth less than CoStar’s offer, one of the people said. The exact size of Warburg Pincus’s offer is unclear.
CoreLogic’s board continues to evaluate the deal, and is expected to make a decision on whether to proceed with a sale in the coming weeks, the people said.
Representatives for CoStar, Warburg Pincus and CoreLogic declined to comment.
CoStar, based in Washington, provides data and analytics to the real estate industry.
Irvine, California-based CoreLogic launched a strategic review in November in the midst of a boardroom battle with investors Cannae Holdings Inc. and Senator Investment Group. The duo subsequently won three seats on CoreLogic’s board.
The investors had offered to buy the company in June but pulled out of the sales process after CoreLogic said it had received indications of interest at $80 or above. The duo, which said they weren’t interested in acquiring CoreLogic at that price, had offered $66 a share to buy the company.
CoreLogic’s shares rose 4.4% to $79.50 at 10:34 a.m. in New York on Tuesday, giving the company a market value of about $6.2 billion.
CoStar fell 2.6% to $901.24, giving it a market value of about $35.5 billion.