ILS Godzilla Continues Its Rampage
Continuing its run of acquisitions in the ILS market, CoStar announced it is purchasing RentPath, which in turn announced it is entering chapter 11 bankruptcy protection. Details come from an article in the Wall Street Journal (subscription required):
CoStar Group Inc. has agreed to buy RentPath Inc. for $588 million, as the real-estate data giant pushes deeper into the fast-growing business of helping renters find apartments online.
The all-cash deal was announced by the companies Tuesday evening as RentPath said it would seek chapter 11 bankruptcy protection. Atlanta-based RentPath has been struggling financially and recently hired financial advisers to help it restructure more than $650 million of debt, The Wall Street Journal reported.
RentPath, which is owned by private-equity firms TPG Capital and Providence Equity Partners LLC, controls real-estate websites ApartmentGuide.com, Rentals.com and Rent.com. It had about 28,000 properties listed on its network in December...
In a written statement Tuesday night, RentPath described CoStar as a “stalking horse bidder” in what will be a bankruptcy court-supervised sales process. “If other qualified bids are submitted, the company will conduct an auction,” RentPath said.
If there are no other bids the deal will still have to be approved by the bankruptcy court and then pass regulatory muster with the Federal Trade Commission.