RentPath Announces Settlement of Break-Up Fee Litigation
ATLANTA, March 4, 2021 /PRNewswire/ -- RentPath announced today that a settlement agreement has been reached with CoStar Group, Inc. (NASDAQ: CSGP) ("CoStar"), fully resolving the litigation in the United States Bankruptcy Court of the District of Delaware ("the Court") regarding CoStar's obligation to pay RentPath a $58,750,000 break-up fee under the terms of their terminated transaction agreement. Under the terms of the settlement agreement, which were approved by the Court today, CoStar will pay RentPath $52,000,000, which is 88.5% of the break-up fee, within two business days of the Court's approval.
As previously disclosed on February 19, 2021, Redfin Corp. (NASDAQ: RDFN) has entered into an agreement to acquire RentPath for $608,000,000 in cash, subject to certain customary antitrust and bankruptcy court approvals.
"It's a total grand slam for RentPath and our employees; in the space of a few days, we have reached an agreement to be acquired by Redfin for a higher price," said Dhiren Fonseca, RentPath's CEO. "In Redfin we now have a partner who we know we can trust, who shares our values and moral ethic, and whose commitment to delivering value to customers is aligned with our DNA. RentPath has always represented the best partner for multifamily communities and an employer of choice in our industry. $52,000,000 is a lot of money, and CoStar shareholders and customers should be asking themselves, who ultimately will be stuck with that bill. We are now free to focus on what matters most – serving our customers and beating our competition."
About RentPath:
RentPath is a leading digital marketing solutions company that empowers millions nationwide to find apartments and houses for rent. Through its brands, RentPath continues to simplify the rental search experience while driving quality advertiser leads that result in occupancies and a high return on investment. With powerful online and mobile solutions that provide prospective renters with the information and tools they need, RentPath connects consumers with a home that reflects their personal lifestyles. If you need help finding great tenants for your community or property, please find us at www.rentpath.com/get-started/.
RentPath helps people navigate the rental journey by providing a delightful, stress-free experience so that all renters find and enjoy their ideal home. If you're interested in finding a home, visit us at www.apartmentguide.com, www.rent.com, or www.rentals.com.
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SOURCE RentPath Holdings, Inc.
