SUNNYVALE, CA – Matterport, Inc. (NASDAQ:MTTR), a leader in spatial data technology for the digital transformation of the built world, announced today the approval of a merger agreement with CoStar Group (NASDAQ:CSGP), Inc. This decision came during a special meeting of stockholders held today, where a majority of the votes cast were in favor of the adoption of the Merger Agreement.
The definitive proxy statement, filed with the U.S. Securities and Exchange Commission on June 10, 2024, outlined the terms of the merger. The agreement, dated April 21, 2024, involves CoStar Group, Matrix Merger Sub, Inc., and Matrix Merger Sub II LLC, both subsidiaries of CoStar Group, and Matterport.
The total number of shares of Common Stock outstanding as of the record date, June 6, 2024, was 318,762,400. At the special meeting, 199,030,714 shares were represented, either in person or by proxy, constituting the required quorum.
The stockholders approved three key proposals:
1. The adoption of the Merger Agreement received overwhelming support, with 197,305,400 votes for, 1,507,812 against, and 217,501 abstentions.
2. The non-binding, advisory vote on compensation for Matterport's named executive officers related to the merger was also approved, with 180,747,453 votes for, 16,041,109 against, and 2,242,151 abstentions.
3. A motion to approve adjournments of the special meeting to solicit additional proxies, if necessary, was approved with 183,704,253 votes for, 14,872,812 against, and 453,647 abstentions. However, the adjournment was not necessary as there were sufficient votes at the time of the meeting to approve the merger agreement.
The approval of the Merger Agreement signifies a key step in the consolidation process, which is expected to enhance Matterport's offerings in the prepackaged software services industry. This merger is anticipated to leverage the strengths of both Matterport and CoStar Group, aiming to create value for stockholders and reshape the market landscape.
In other recent news, Matterport, Inc. has made significant strides in its merger with CoStar Group, Inc. The company has received a "Second Request" from the Federal Trade Commission (FTC) for additional information and documentary materials related to the merger. Despite this, both companies anticipate the transaction to be completed in the fourth quarter of 2024, subject to Matterport stockholder approval and other customary closing conditions.
In recent developments, Matterport shareholders elected Michael Gustafson as a Class III director and ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024. However, a proposed amendment regarding the waiver of corporate opportunities did not pass.
Analysts have shown confidence in Matterport's growth potential. Deutsche Bank (ETR:DBKGn) has raised its price target for Matterport's shares to $5.50, following the announcement of the merger agreement with CoStar Group. Similarly, Northland has initiated coverage of Matterport with an Outperform rating.
Lastly, Matterport's technology has been adopted by UK-based home extension company Resi, indicating an increasing recognition of its innovative technology in the market. These are the latest developments in Matterport's ongoing growth and corporate structure.
InvestingPro Insights
In light of Matterport's recent merger agreement with CoStar Group, investors and stakeholders may find the following InvestingPro Insights particularly relevant. Matterport has been demonstrating a robust financial position with its cash reserves outweighing its debt, an important metric for assessing the company's ability to manage new investments and growth strategies post-merger (InvestingPro Tip: Holds more cash than debt on its balance sheet).
Additionally, Matterport's liquid assets surpass its short-term obligations, suggesting a comfortable liquidity position as it enters this new chapter (InvestingPro Tip: Liquid assets exceed short term obligations). The company's market capitalization stands at approximately $1.44 billion, reflecting investor confidence and market valuation. Despite challenges in profitability, with the company not expected to be profitable this year and showing a negative P/E ratio of -7.64, Matterport has experienced a significant price uptick over the last six months, with a 94.83% six-month total return (InvestingPro Data: Price Total Return).
For more detailed analysis and additional InvestingPro Tips, visit https://www.investing.com/pro/MTTR. Matterport investors can further benefit from these insights by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 6 more InvestingPro Tips available, subscribers can gain a comprehensive understanding of Matterport's financial health and market potential.
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