CoStar, a publicly-traded company that provides software services for the commercial property industry, has announced that it’s reached a deal to acquire Homesnap, which is a venture backed real estate tech startup whose main product is an app that lets real estate agents to view and manage property listings and communicate with their clients.

CoStar is paying $250 million for Homesnap, which is backed by some $32 million in venture funding. The price represents a 6.25x multiple to Homesnap’s projected 2020 revenue of $40 million. 

The deal mark a significant win for Homesnap’s investors which include the investment firm Revolution. It’s one of the biggest startup deals to emerge from this year from the Washington, D.C. area where Homesnap is based. Upon completion of the acquisition, Homesnap’s roughly 150 employees are expected to join CoStar.

CoStar is a publicly-traded company that provides information, analytics and marketing services to commercial property firms across North America, Europe, and Asia. The company has a product suite that spans several popular real estate buying and auction marketplaces.

Homesnap marks the latest addition to CoStar’s portfolio of real estate assets. With it, CoStar notes that the number of paying brokers and active real estate agents on its US platforms will shoot up from 100,000 currently to over 400,000. The number of property listings on CoStar’s US properties will also more than double from 1.35 million to over 2.6 million.

Homesnap is used both by real estate agents to sell their properties and prospective buyers to search for properties. There are currently 1.3 million active property listings on its portal. The company expects to hit $40 million in revenue this year, up 45% compared to the previous year. 

CoStar’s acquisition of HomeSnap is expected to be completed before the end of this year.

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