CoStar to buy Zonda from MidOcean Partners

MidOcean Partners signed a definitive agreement to sell Bora Inc. and its subsidiaries, known as Zonda, to CoStar Group. Zonda provides North America-focused data, marketplace, and software offerings for the new-home ecosystem, including subscription data and intelligence covering more than 500 housing metrics, new-home marketplaces in the U.S. and Canada, and software tools for virtual home evaluation with visualization, customization, and tours. During MidOcean’s ownership, Zonda completed nine add-on acquisitions, expanded geographic coverage, and invested in proprietary AI-driven data collection and workflow tools. Zonda more than doubled in scale, expanded margins, and delivered over 50 consecutive quarters of year-over-year annual recurring revenue growth. CoStar’s expansion into residential could be strengthened by Zonda’s builder datasets, marketplaces, and workflow software, improving pipeline supply insight in fast-growing markets.

"Zonda is a North America-focused data, marketplace and software platform built around the new-home ecosystem. Its products span land discovery, homebuilding, home discovery and homebuying and are delivered through three main offerings: subscription-based data and intelligence that cover more than 500 housing metrics across North America, new-home marketplaces in the U.S. and Canada, and a suite of software tools for virtual home evaluation including visualization, customization and tours."

"During MidOcean's ownership, Zonda completed nine add-on acquisitions, expanded its geographic coverage and invested in proprietary and patented AI-driven data collection and workflow tools, the firm said. MidOcean reported that Zonda more than doubled in scale, materially expanded margins and delivered more than 50 consecutive quarters of year-over-year annual recurring revenue growth across multiple housing cycles."

"CoStar Group, which has built a dominant position in commercial real estate data and online marketplaces, has been expanding further into residential. Adding Zonda's builder-focused datasets, marketplaces such as NewHomeSource and Livabl, and its workflow software could deepen CoStar's presence on the new-home side of the business and eventually give lenders and real estate agents more granular insight into pipeline supply, especially in fast-growing Sun Belt and exurban markets."

"Sara Badham, a managing director at MidOcean, said in the announcement that the firm and Zonda's management team sought to build the preeminent platform for data, insights and technology across the residential housing ecosystem and backed that strategy with investments in acquisitions, technology, product and talent."

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