BETHESDA, MD – April 1, 2008 – CoStar Group (NASDAQ: CSGP ), the number one provider of information services to the commercial real estate industry, today announced it has acquired the online commercial real estate information assets of First CLS, Inc. (doing business as The Dorey Companies and DoreyPRO), an Atlanta-based provider of local commercial real estate information.
“We welcome the opportunity to expand CoStar’s service in this key U.S. market and add DoreyPRO customers to our comprehensive, international information network," stated CoStar President & CEO Andrew C. Florance. “CoStar has served the information needs of commercial real estate professionals in Atlanta for more than two decades. We’ve long recognized Atlanta’s role as a leading financial center, transportation hub and economic engine for the entire Southeast. This acquisition makes our strong presence in Atlanta and the Southeast even stronger. It will add value to our national network and create additional growth opportunities for our services within the market.”
"The vast majority of Atlanta’s commercial property professionals will now be able to access and share high-quality, standardized information across the same platform, resulting in greater efficiency and improved productivity for all market participants,” continued Florance. “As the largest research organization serving commercial real estate, CoStar's research and technology resources are significantly greater than any local company can provide. And the broad exposure our platform can provide to brokers, owners, lenders and investors across the country and internationally offers a significant benefit to our existing customers and those joining us from The Dorey Companies."
Under the acquisition agreement, current DoreyPRO customers will now use the corresponding CoStar information service as called for under their DoreyPRO license agreement: CoStar Property Professional®, the industry's premier source of comprehensive commercial building information and property listings; CoStar COMPs®, the industry's most trusted source of verified commercial property sales comparables; and CoStar Tenant®, a searchable database of more than three million tenant records for identifying tenants by square footage occupied, industry type, size or geographic location, and researching lease expirations, move leads and more.
In addition, through a separate agreement, CoStar has acquired the rights to the Dorey Market Analysis Reports. Current Dorey Market Analysis Report customers will now receive the CoStar Market Report. The acquisition does not include Dorey’s print guides.
The new clients joining CoStar in the acquisition will be served by the company's existing Atlanta research and sales team. CoStar’s database includes more than 32,000 office, industrial and retail properties throughout the greater Atlanta market with a combined inventory of 1.1 billion square feet.
CoStar expects this acquisition will be accretive to achieving a 30% EBITDA margin in its U.S. operations by year-end. We do not expect the acquisition to be material to revenue or earnings for 2008.
About CoStar Group, Inc.
CoStar Group, Inc. (Nasdaq: CSGP ) is the number one provider of information services to commercial real estate professionals in the United States as well as the United Kingdom. CoStar's suite of services offers customers access via the Internet to the most comprehensive database of commercial real estate information throughout the U.S. as well as in the United Kingdom and France. Headquartered in Bethesda, MD, the company has approximately 1,300 employees, including the largest professional research organization in the industry. For more information, visit http://www.costar.com .