Reis, Inc. (REIS) began Wednesday’s trading at $5.95, which was within its normal trading range from $5 to $6, but the day ended with REIS being listed as Nasdaq’s biggest percentage gainer. With the last trade at $7.15, the REIS common stock completed the day with an amazing 61.04 percent increase. Investors continue to show confidence in REIS as the stock continues to climb more gradually in the first few hours of today’s trading.
Investors may be looking into REIS due to the significant interest that CoStar Group, Inc. has shown for REIS in recent months. CoStar made an offer to acquire REIS at $8.75 per share on June 5 when the stock was at $5.42. The board of directors considered the proposal, but ended up rejecting the offer. Since that time, the REIS stock has decreased about 20 percent.
On August 12, CoStar again approached REIS and resubmitted its proposal to purchase REIS at $8.75 per share. The cash proposal would represent a premium of approximately 97 percent above the closing price of REIS common stock on August 12. Costar believes that the combination of the two companies would result in substantial operating efficiencies through the elimination of redundant infrastructure and operating costs. CoStar also believes that the REIS customers would get additional benefits from the depth and quality of CoStar’s research data. Additionally, CoStar feels that the merger of the two companies would be in the best interests of the stockholders of both companies.
Reis, Inc. is a New York-based company that provides impartial commercial real estate information and analysis at the city, neighborhood, and property levels to property owners, developers and builders, banks and lenders, equity investors, lending institutions, brokers, and appraisers. The data allows users to make informed buying, selling, and financial decisions, as well as to assess and quantify the risks of loss associated with mortgages, properties, portfolios, and real estate-backed securities. The company’s products include online access to information and analytical tools, trend and forecast analysis at the city and neighborhood levels, building-specific information, new construction listings, and property valuation estimates. The database currently provides data on 80 U.S. metropolitan areas and is used by more than 500 financial and banking institutions with over 10,000 commercial real estate professionals.
CEO of REIS, Lloyd Lynford, confirmed Wednesday that its board of directors again rejected the proposal from CoStar. The board felt that the proposed price is far below the long-term value REIS could realize by continuing its business as an independent entity or by a sale of the company. With the current state of the market, the REIS database is an essential tool for those dealing in real estate.
Let us hear your thoughts below:
