Property information and analytics provider CoreLogic has confirmed that CoStar has increased the terms its takeover bid, after putting forward an unsolicited bid last month.
CoStar has now offered to pay CoreLogic shareholders $6.00 per share in cash, in addition to its previous offer of 0.1019 shares of CoStar Group common stock in exchange for each share of CoreLogic common stock.
The revised offer could threaten the acquisition offer that CoreLogic has already accepted from private equity firms Stone Point Capital and Insight Partners, which values the company at $80 per share.
This offer was itself considered to be a substantial mark-up on an earlier $65 per share offer from investors Senator and Cannae that CoreLogic rejected in July 2020.
At time of writing, CoStar shares are worth approximately $815, meaning CoreLogic shareholders could expect their shares to be valued at about $83 each, or $89 with the additional $6.00 per share terms.
However, last month when CoreLogic confirmed the original offer from CoStar, the company’s shares were worth closer to $890, which would have valued CoreLogic shares at $90 each under the terms of the deal.
So it could be that the revised bid is intended to make up for the fall in CoStar’s share price and maintain the original value of the offer.
CoreLogic said that its Board of Directors will “carefully review the proposal in consultation with its outside legal counsel and financial advisors” and added that its shareholders need take no action at this time.
The company also stressed that the merger agreement with Stone Point and Insight is still “in full force and effect”, although it remains subject to shareholder approval.
Evercore is serving as financial advisor to CoreLogic and Skadden, Arps, Slate, Meagher & Flom LLP is serving as the Company’s legal advisor.
Last year, CoreLogic was embroiled in a months-long battle with investors Senator Investment Group and Cannae Holdings after it rejected a $65 per share acquisition offer.
Senator and Cannae accused CoreLogic of acting against the interests of shareholders and tried to oust members of the CoreLogic board. However, in October CoreLogic was vindicated after receiving multiple acquisition offers that valued the company at or above $80 per share.
But the drama could now be set to continue if either CoreLogic’s Board or its shareholders decide that new offer from CoStar is preferable.
It remains to be seen how the situation will play out, although it could result in upward revisions of the bid from Stone Point and Insight, or new offers from other parties, given that CoreLogic had been fielding multiple offers in the $80 per share range.
Founded in 1987, CoStar is a provider of commercial real estate information, analytics and online marketplaces.