Real estate data and listing giant CoStar Group has entered a definitive agreement to buy property analytics and software platform Zonda in an all-cash deal valued at $800 million.

The transaction expands CoStar’s digital marketplace portfolio by integrating Zonda’s extensive construction databases, business software and online listing engines. Zonda currently serves more than 3,000 corporate clients across North America, counting prominent housing construction firms, land developers, product suppliers and building lenders among its network. Operating primarily on a subscription framework, the B2B information provider holds high profit margins and maintains a net customer retention rate of 104%.

The technical core of the acquired entity consists of a proprietary, lot-level property database tracking new residential communities, local land use activity, building status updates, individual home sales and corporate builder metrics. These data packages and regional analytics systems are integrated directly into development workflows to handle commercial underwriting, regional land acquisition, capital placement strategies and volume forecasting.

The takeover package also includes the prominent digital consumer marketplaces NewHomeSource and Livabl, which operate across the United States and Canada. These websites publish inventory details, floor layouts, digital property tours, current pricing structures and local financial incentives directly from residential construction companies. By hosting exclusively new-build properties, the portals offer construction firms targeted consumer marketing channels entirely separated from general secondary market home listings.

Data from the US Census Bureau shows the financial value of the domestic new residential construction segment reaches nearly $1 trillion each year. CoStar corporate strategy teams view this sector as a commercial landscape significantly larger than the institutional office and multifamily rental segments that the firm has previously commercialised.

“Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “This acquisition extends CoStar Group’s leadership into a major new segment of the real estate industry and strengthens our ability to provide clients with comprehensive information solutions across every major real estate segment. We believe the combination will deliver deeper insights, workflow efficiencies, and analytics to the homebuilding industry, while strengthening our core information offerings and significantly expanding our new home marketplace capabilities.”

Corporate planners intend to use Zonda’s existing developer links to generate cross-selling initiatives across CoStar’s commercial, residential, apartment rental, debt lending and data analytics divisions. Furthermore, the buyout will link Zonda’s Envision visualisation systems with the spatial scanning capabilities of Matterport, a technology firm CoStar recently moved to acquire.

The corporate transaction is subject to typical regulatory approvals alongside standard completion conditions. Financial advisors from BofA Securities are working on the deal alongside legal professionals from Latham & Watkins LLP. Executive guidance expects the corporate acquisition to contribute positively to adjusted earnings per share within its initial full calendar year of joint ownership.