April 22 (Reuters) - CoStar Group ( CSGP ) said on

Monday it would buy 3D virtual tour creator Matterport ( MTTR )

in a cash-and-stock deal valued at $1.6 billion, as the real

estate information provider looks to boost digitization and user

experience.

The deal implies a per-share value of $5.50 and represents a

premium of about 216% over Matterport's ( MTTR ) last close of $1.74.

Shares of Matterport ( MTTR ) more than doubled to $4.67 while CoStar

Group ( CSGP ) edged up about 0.9% at $84.94 in early trading.

Sunnyvale, California-based Matterport ( MTTR ), which was founded in

2011, makes 3D cameras for virtual tours of real estate. It also

offers a platform that allows users to upload and view the

spaces they have scanned.

"Matterport ( MTTR ) is the new open house or property tour. People

now select their next home, apartment...on their mobile device

often without ever visiting the property," said CoStar ( CSGP ) CEO Andy

Florance.

Matterport ( MTTR ) has about 440 employees and its 2023 revenue rose

16% from a year earlier to $158 million.

CoStar ( CSGP ), which is scheduled to report its first-quarter

financial results on Tuesday, said the deal is expected to be

completed this year.