10:05 AM EDT, 04/22/2024 (MT Newswires) -- (Updates with additional details starting from third paragraph.)

CoStar ( CSGP ) agreed to acquire Matterport ( MTTR ) in a cash-and-stock deal valued at $5.50 per share, reflecting an enterprise value of an estimated $1.6 billion, the companies said Monday.

Under the deal, Matterport ( MTTR ) shareholders will get $2.75 in cash and $2.75 in CoStar ( CSGP ) common shares for each Matterport ( MTTR ) common share, according to the companies.

The deal, expected to be completed during this year, has been approved by Matterport's ( MTTR ) board but still requires the approval of Matterport ( MTTR ) shareholders as well as regulatory clearance, CoStar ( CSGP ) said.

Directors, officers and some Matterport ( MTTR ) shareholders, representing about 15% of Matterport's ( MTTR ) shares, have signed voting agreements to back the deal, CoStar ( CSGP ) said.

Matterport ( MTTR ) posted revenue for the year ended Dec. 31 of $158 million, CoStar ( CSGP ) said.

Matterport's ( MTTR ) shares soared more than 173% and CoStar ( CSGP ) shares rose 1.8% in recent trading Monday.