CoStar Group Inc. is buying Classified Ventures LLC 's business for $585 million in cash.

Washington, D.C.-based CoStar will pick up, and CoStar is a real estate information company that provides real estate news, property listings, analytics, and other services. allows prospective rents to search for apartments by location, number of bedrooms or bathrooms, and rental price. RentalHomesPlus provides similar services for home, townhouse and condominium rentals, and ApartmentHomeLiving provides apartment search tools.

Classified Ventures announced in September that it would explore strategic alternatives for the business. The deal is expected to close in the second quarter.

The seller, which is a joint venture between A.H. Belo Corp. (NYSE: AHC), Gannett Co. Inc. (NYSE: GCI), the McClatchy Co. (NYSE: MNI), Tribune Co. and Graham Holdings Co. (NYSE: GHC), is retaining its business.

Moelis & Co. advised Classified Ventures on the deal, while Skadden Arps Slate Meagher & Flom LLP provided legal counsel. 


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