Image via CoStar press announcement
By Builder
CoStar Group announced that it has entered into a definitive agreement to acquire Zonda, BUILDER’s parent company, for $800 million in cash.
Zonda serves more than 3,000 customers across the home building ecosystem, including many of the largest residential builders, developers, suppliers, and lenders in North America. Its platform delivers end-to-end solutions spanning land acquisition, development planning, home building analytics, construction forecasting, community marketing, operational workflow management, and online new-home marketplaces. Zonda is an attractive B2B business with strong profit margins. The majority of its revenue is subscription-based, with an impressive 104% net customer retention.
At the core of Zonda is a proprietary, lot-level database covering new-home communities, land development activity, construction status, home sales, and builder operations. This data and the software built around it are deeply embedded in builder workflows and are widely used to support underwriting, land strategy, capital allocation, development planning, forecasting, and sales operations across the industry.
