CoStar Group has agreed to acquire Vexcel, an aerial imagery and geospatial data provider, for about US$730m in cash, the company said on 27 October 2026 alongside its third-quarter results.
Why CoStar Group, Inc. is buying Vexcel Group
CoStar plans to apply AI to Vexcel's imagery and lidar to identify property features and generate new data fields across its platforms, and to speed Vexcel's revenue growth using CoStar's sales force. Vexcel will keep operating under its own brand with chief executive Erik Jorgensen and the existing leadership team.
Deal terms and financing
The price of about US$730m is payable in cash, subject to customary working capital and other post-closing adjustments, and will be funded from cash on hand and CoStar's revolving credit facility. CoStar expects the deal to be accretive to adjusted EPS in the first full year.
Regulatory approvals and timing
Closing requires expiry or termination of the Hart-Scott-Rodino waiting period and certain foreign regulatory clearances, and is expected in the first quarter of 2027. No CoStar shareholder vote or financing condition applies.
Market context
Vexcel captures more than 60 million images a year across more than 45 countries and 320 major metros, at resolutions of 7.5 to 15cm. The deal follows CoStar's US$800m agreement to buy homebuilding data provider Zonda in May 2026.
