Global real estate information and online marketplace leader CoStar Group, Inc. (NASDAQ: CSGP) has entered into a definitive agreement to acquire Vexcel Group, Inc. (“Vexcel”), the operator of one of the world’s largest survey-grade aerial imagery programs, for approximately $730 million in cash.
The acquisition integrates Vexcel’s high-resolution spatial coverage—spanning 45+ countries, 320 major metros, and 99.6% of the U.S. population—with CoStar Group’s comprehensive real estate database. Over the last twelve months, Vexcel generated over $140 million in revenue, up more than 30% year-over-year, with an Adjusted EBITDA margin of approximately 20%.
Following the closing, expected in Q1 2027, Vexcel will continue to operate under its existing brand, led by CEO Erik Jorgensen and its current leadership team.
Key Deal Structure & Strategic Highlights:
- Technology & AI Integration: Combines Vexcel’s ultra-high-resolution aerial photography (7.5–15 cm resolution) with AI capabilities to extract hundreds of proprietary data fields across half a billion properties.
- Revenue Synergies: CoStar plans to leverage its 2,000-person commercial sales force to accelerate Vexcel’s recurring revenue growth.
- Advisors Involved: Goldman Sachs served as exclusive financial advisor and Latham & Watkins acted as legal advisor to CoStar Group. William Blair acted as financial advisor and Snell & Wilmer served as legal advisor to Vexcel.
“Combining these high-resolution images with the rapidly evolving capabilities of AI creates a transformative, new, ultra-low-cost proprietary data source that makes CoStar even more valuable and accurate,” said Andy Florance, Founder and CEO of CoStar Group.
“By joining CoStar Group, we gain the scale, technology, and resources to broaden our reach and deliver even greater value to customers worldwide,” added Erik Jorgensen, CEO of Vexcel.
