CoStar agrees to buy aerial imagery firm Vexcel for about $730M

CoStar Group agreed on Oct 27 to buy Vexcel, which captures aerial imagery and turns it into property and infrastructure data, for about $730M in cash. CoStar plans to use AI to pull property-level data fields from Vexcel's imagery. (CoStar press release, SEC filing)

Vexcel's revenue topped $140M over the last twelve months, up more than 30%, and comes mainly from multi-year data contracts with insurers and others. CoStar will fund the deal from cash and its revolving credit facility and expects it to close in the first quarter of 2027. Vexcel keeps its brand and CEO Erik Jorgensen. (CoStar press release, SEC filing)