* CoStar to pay in cash and stock
* Deal at 31 pct premium to LoopNet's Tuesday close
* LoopNet shareholders to get $16.50 in cash, 0.03702 CoStar
* LoopNet shares up 26 pct; CoStar shares down 2 pct
April 27 CoStar Group Inc , an
information service provider to REITs, agreed to buy LoopNet Inc
for about $860 million in cash and stock, to double its
paid subscriber base.
LoopNet is a commercial real estate information services
provider and operates LoopNet.com, which is a commercial real
estate listing service with over 4 million members.
The deal was at a premium of 31 percent to LoopNet's Tuesday
closing price of $14.31.
LoopNet shareholders will get $16.50 in cash and 0.03702
shares of CoStar common stock for each share held, the companies
said in a joint statement.
CoStar expects the deal to add to adjusted net income in
CoStar said it will fund the deal with a $415 million term
loan from J.P. Morgan and a $50 million revolving credit
LoopNet shares were up $3.70 at $14.37, while those of
CoStar were down $1.13 at $60.25 on Wednesday on Nasdaq.
(Reporting by Supantha Mukherjee in Bangalore;Editing by Vyas