CoStar Group (CSGP) merger with Matterport (MTTR) - February 2025

CoStar Group completed its merger with Matterport on 2/28/2025 for cash and CSGP stock.
Matterport shareholders were to receive $2.75 in cash plus 0.03552 CSGP share for each MTTR share.
The transaction is taxable only to a maximum of the cash received in the merger. Gain but not loss will be realized based on the total value of the cash and stock received and the cost basis of the MTTR shares. The SEC filing for this merger can be found on the EDGAR site at:
https://www.sec.gov/Archives/edgar/data/1057352/000119312524157598/d813688ds4a.htm#toc813688_8

Important Reminders and Notes:
In Merger with cash transactions, realized capital gains and the cost basis of the new shares have a component dependent on the price per share chosen in the entry screens. In our experience brokers tend to use the price per share published by the companies on their websites in their guidance to shareholders. If the companies publish guidance with a share price, we use that share price in our instructions to minimize possible differences between the accounting records and broker information.

In cases where no guidance is available, we will choose the lower of the opening or closing price on the effective date. Either of these prices is acceptable to the IRS and by choosing the lower price some realized capital gains will be deferred to a later date. There is always the chance the price we choose will not be the price chosen by your broker.
The gain from the merger and cost basis of the new shares recorded in your accounting records will then differ from your broker information. Because of the lack of detail in the tax code, both our choice and your broker’s choice would be reasonable estimates of market value for the shares received. Your records are NOT incorrect because they differ from your broker. Tax
return forms do have specific areas to report these usually small differences. Our tax printer software handles these adjustment entries automatically in the normal operation of the software.

For Matterport shareholders this merger is a cash-plus-stock reorganization. Information for these instructions is from SEC filings, company websites, and websites offering historical stock prices.

Instructions for myICLUB Users.

Use the Merger with cash transaction.

Step 1
Date: 2/28/2025
Merging Company: MTTR (Matterport)

Step 2
Be sure to choose the option Transaction is taxable to a maximum of the cash received.

Cash per share received: 2.75
Exchange ratio of new to old shares: 0.03552
Price per share of new shares on merger date: 75.63 (Opening price on 2/28/2025)
Reorganization Fee: See your broker statement