Update: CoStar Group Withdraws Bid to Buy CoreLogic

Commercial real estate information provider CoStar Group said it had withdrawn its bid to buy CoreLogic after the U.S. property analytics company rebuffed its sweetened buyout offer of more than $7 billion earlier on Thursday.

In February, CoreLogic had agreed to sell itself in a $6-billion deal to private equity firms Stone Point Capital and Insight Partners, and CoStar was trying to compete against that agreement.

“With interest rates moving up, now is not the time for us to aggressively buy into the residential mortgage market,” CoStar Chief Executive Officer Andrew Florance said in a statement.

CoStar said the rising interest rates have caused valuations for residential property technology companies to fall significantly in recent weeks and that changed its view of the value of CoreLogic.

CoreLogic said the deal with the two private equity firms was still on.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel)