Ladies and gentlemen, thank you for standing by. Welcome to the announcement to acquire Apartments.com.At this time all participants are in listening mode later we will conduct a question and answer session and instructions will be given at that time. At this time, we will turn the conference call over to your host, Mr. Richard Simonelli. Please go ahead, sir.
Thank you, operator. Good morning, everyone. Thanks for joining us today. Welcome to our conference call to discuss the acquisition of Apartments.com. We're coming to you live from our offices at Midtown Manhattan. We're delighted you joined us today. Before I turn the call over to Andy, I have some really important items for you to hear. Certain portions of this discussion contain forward-looking statements which involve many risks and uncertainties that can cause actual results to differ materially from such statements. Important factors that cause actual results to differ include but are not limited to those stated in our March third, 2014 press release on the acquisition of Apartments and in CoStar's filings with the SEC, including our Form 10-K for the period ended December thirty-first, 2013, under the heading Risk Factors.
All forward-looking statements are based on information currently available to CoStar on the date of this call, and we assume no obligation to update these statements, whether as a result of new information, future events, or otherwise. As a reminder, today's call is being broadcast live and in color over the Internet at www.costar.com. A replay will be available approximately 1 hour after the call concludes and will be available until April 3, 2014. To listen to the replay, call 800-475-6701 within the United States or Canada, or 323-653-8444 outside the United States and Canada. The access code is 321061, and a replay of this call will be available on our website soon after the call concludes. I'll turn it over to Andrew Florance. Andy?
Thank you, Rich. Welcome, and thank you for joining us this morning on short notice. This morning, CoStar Group announced that we have signed an agreement to purchase Apartments.com, a division of Classified Ventures, for $585 million in cash. We expect the transaction to close in the second quarter of 2014. The apartment or multifamily sector of commercial real estate is one of the largest, with a value in excess of $2 trillion in the U.S. The multifamily vertical is bigger than the office vertical, which is where we started many years ago. Unlike the residential resale real estate sector, which involves personal consumption, apartment buildings and rentals are income-generating investments. Apartment owners are often sophisticated organizations or REITs with up to multibillion-dollar real estate portfolios. CoStar has been selling information services to apartment owners for close to three decades.
The apartment sector represents a very important growth opportunity or continued growth opportunity for the company. Much the same way LoopNet revolutionized how owners and brokers market in the commercial real estate sectors of office, industrial, and retail properties, Apartments has transformed the way property owners market in the apartment building sector of commercial real estate. Over the past 10 years, Apartments has successfully migrated apartment advertising from the classified ads section of Classified Ventures owners' various newspapers to much more effective and efficient online advertising. Apartments customers receive cost-effective, targeted marketing solutions that effectively drive measurable exposure, high-quality traffic, and leads to their business. Apartments is used by thousands of commercial real estate industry professionals and millions of apartment shoppers across the country. In total, there are an estimated 39 million renter households in the U.S., and the typical renter moves about every 18 months.
Apartments provides a national online resource that matches apartment seekers with great apartments. In addition to Apartments, the business operates apartmenthomeliving.com and rentalhomesplus.com. In 2013, the three sites generated 114 million visits and aggregate average of 7 million unique monthly visitors. Apartments maintains an online database of 4.6 million apartment units. Apartments does not compete in the highly competitive and contentious online residential resale space. Apartments is one of the most widely recognized online apartment rental brands in the U.S. and is a leading advertising destination for professional management companies and building owners. According to a recent study conducted by the firm, 95% of U.S. apartment owners are familiar with the Apartments.com brand. Obviously, Apartments.com is the most intuitive URL for this sector.
Apartments leads in SEO results for key search terms such as "apartments for rent Atlanta" and other city names or "Atlanta apartments for rent." In data provided by Conductor Searchlight from July 2012 to July 2013 across major search engines, Apartments was in the number one organic search result position 57% of the time for that and similar key search terms. In 2013, Apartments had unaudited revenue of approximately $86 million and unaudited adjusted EBITDA of $28 million, which translates into an adjusted EBITDA margin of approximately 33%. Apartments is based in Chicago and has approximately 320 employees. One hundred and forty of these employees are sales professionals, including 75 advertising field representatives positioned across the U.S.
The top eight executives, led by Apartments President Dick Burke, have an average of 13 years of online experience. All eight of these executives will remain with the business and have entered into employment terms with CoStar that will take effect upon the deal close. We believe that by combining CoStar Group's rich apartment information analytics with Apartments' leading online marketplace, we can create significant additional value for our clients and shareholders. In our recent successful acquisition integration of LoopNet, we demonstrate amazing results by combining a leading information provider with a leading marketplace. Over the past two decades, CoStar Group has built what we believe is the most comprehensive information source covering U.S. apartment buildings. CoStar Group collects details such as availabilities, rents, key contacts, comparable sales, photographs, building characteristics, and other details on hundreds of thousands of apartment buildings.
We believe that we have collected information on 5 times as many buildings as any other commercial real estate information provider. We believe that CoStar's comprehensive database will add richer content to Apartments, thereby building a better consumer experience and driving more consumer traffic and ultimately more leads for our customers. Apartments currently has information on 4.6 million apartment units, while CoStar can provide information on 17 million apartment units, or 270% more units. In addition, we believe that owners and property managers using Apartments will find CoStar's multifamily information and analytic solutions valuable for their own understanding of critical market dynamics. We also believe CoStar's huge database of apartment owners and managers can be a valuable source of new leads for the Apartments sales force.
We believe that the Apartments sales force gives us a robust advertising field source we want that when combined with our existing sales team, will be invaluable in selling advertising solutions for both Apartments and LoopNet, thereby further accelerating LoopNet's and Apartments' revenue growth. CoStar Group's existing marketplaces are leaders in their respective verticals. LoopNet, Cityfeet, and Showcase attract over 5 million monthly unique visitors and are the number 1, 2, and 3 most trafficked sites for commercial real estate in the United States. Lands of America and Land and Farm provide a marketplace for rural land and farm properties, and are number 1 and 3 sites by revenue respectively, drawing 1.7 million unique monthly visitors in aggregate.
BizBuySell and BizQuest are the leading marketplaces for small businesses for sale. They aggregate to have over 1 million unique monthly visitors and are number 1 and 2 business-for-sale sites by traffic. We intend to draw on our deep experience with all these marketplaces and leverage our management, technology, sales, and marketing expertise to make this acquisition a real success. We are confident that CoStar Group's proven real estate technology capabilities will help Apartments build the industry's most compelling apartment rental destination on the web. Conversely, we also expect that CoStar's multifamily information analytics solutions will strengthen as we gain valuable demand-side data from Apartments. We plan to leverage the combination of a leading information provider with a marketplace to create value.
Not only is our strategy in this deal similar to what we accomplished in our recent LoopNet deal, many of the key metrics are also strikingly similar. Both are leading online commercial real estate marketplaces. At the time of deal signing, LoopNet had $83 million in annualized revenues. Apartments has $85 million. At the time of deal signing, LoopNet had $28 million in adjusted EBITDA, and Apartments has $28 million in adjusted EBITDA. LoopNet was growing at 10%, and Apartments is growing at 10%. We have since doubled LoopNet's growth rate, and we similarly hope to double Apartments' growth rate. LoopNet had 322 employees, and Apartments has 320.
We felt that we could create $20 million in synergies between CoStar and LoopNet in the first 24 months post-merger, and we now believe that we can also create $20 million in synergies between CoStar and Apartments in the first 24 months. There are some differences between the deals. LoopNet had a 95% monthly renewal rate, Apartments is much higher at 98%. At the time of the deal, LoopNet had 3.6 million unique monthly visitors, Apartments has significantly more at deal signing with 7 million monthly. LoopNet had eight distinct businesses within their company, Apartments is much simpler with only two. LoopNet operate in a less competitive sector of online commercial real estate marketplace, Apartments does operate in a more competitive one.
We paid $860 million to acquire LoopNet, we will pay $585 million, or $275 million less, to acquire Apartments. In the LoopNet acquisition and subsequent equity raise, we issued 5.75 million shares, resulting in some shareholder dilution. In the Apartments acquisition, we do not anticipate issuing any shares. I'm looking forward to working with the great team at apartments.com, we welcome them to the CoStar family. We're all dedicated to building and growing the premier online apartment platform and establishing CoStar's leadership position in commercial real estate's $2 trillion U.S. multifamily asset class. At this point, I'll turn the call over to Mr. Brian Radecki, our Chief Financial Officer.
Thank you, Andy. Again, I'd like to thank each of you on the call today for your flexibility as we had to schedule this call quickly in light of today's transaction. As Andy mentioned, we think the combination of these two companies unlocks the potential for exciting growth in commercial real estate's large multifamily sector. Apartments is a division of Classified Ventures. The deal is structured as an asset purchase agreement. We will finance $585 million of cash through a purchase of combination of cash on hand and debt. We received a commitment letter from JPMorgan, Bank of America, SunTrust, Wells Fargo for a fully committed term loan of $400 million and $225 million revolving credit facility, each with a term of 5 years.
These funds will be available to fund the acquisition, refinance the company's existing debt, and finance ongoing working capital needs of the company and its subsidiaries. The loans will bear interest of LIBOR plus a spread of 2, subject to reductions in the spread based on leverage ratio. The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under Hart-Scott-Rodino, HSR, and is not subject to a financing condition. We currently expect the transaction to close in the second quarter of 2014. Apartments' unaudited 2013 results include estimated revenue of approximately $86 million and adjusted EBITDA of approximately $28 million, which equates to a 33% adjusted EBITDA margin. Since 2011, Apartments' unaudited year-over-year revenue growth has been approximately 10%. We expect the acquisition to be accretive in 2014 non-GAAP earnings and adjusted EBITDA.
As Andy mentioned, we believe we can achieve annualized run rate synergies of $20 million over the next 24 months. This $20 million of annualized run rate synergies added to the Apartments adjusted EBITDA essentially works out to approximately 12 times purchase price multiple for the acquisition. We expect some of the cost synergies to come in over time, similar to LoopNet. But this deal is really about taking advantage of the significant revenue opportunity created by putting these two businesses together. Gee, where have we heard that before? Both management teams are very excited about the opportunities this combination brings, and we look forward to a successful close and getting started on the integration to take advantage of these opportunities in the second quarter.
As many of you know, I've talked in the past about our long-term goal of achieving a run rate of $800 million in annualized revenue by the fourth quarter of 2017. Assuming the transaction closes as expected and based on the growth trajectories of the two standalone businesses as well as synergies, I now believe we can reach that goal by the fourth quarter of 2016, one year earlier than we previously expected. At this point, we are currently not in a position to estimate the full financial impact of the proposed acquisition until it closes. We expect to provide more detailed information in combined 2014 guidance after the acquisition closes in the second quarter, so we know what all the prorations are and accounting adjustments.
Also, let me reiterate that we still feel great about our guidance that we provided a little over a week and a half ago. Now we'll open up the call for questions.
Thank you very much. And ladies and gentlemen, if you do wish to ask a question, please press star and then one on your touch-tone phone. You will hear a tone indicating that you've been placed in queue, and you may remove yourself from the queue at any time by pressing the pound key. So once again, for your questions, you may press star and then one at this time. And our first question in queue will come from Brandon Dobell with William Blair. Please go ahead.
Thanks, guys. Good morning.
Good morning.
I'm gonna focus for the first question on what you guys think you can bring to Apartments.com from, I guess kind of sales and process point of view. I'm mostly focused on those kind of, those customers that are not the, maybe the top 50 multi-housing owners or managers, but the rest of Apartments.com's, I guess, customer base, which is I think a lot of smaller, regional apartment managers or owners. What do you think you can bring to Apartments.com, either increased penetration or, you know, whatever the, I guess, sales strategy might be to broaden that list?
Sure. First of all, by combining the CoStar and apartments.com sales force, sales efforts, we're going to create a lot of synergy there. We'll get more scale. We'll have deeper field penetration out there across the U.S., which is very important in these relationship advertising sales. Secondly, apartments.com has historically not had the kind of information capabilities that CoStar Group has. As a result, they've tended to focus on the 100 unit plus apartment communities. Well, you know, the majority of apartment communities are less than 100 units plus, and they have the exact same marketing needs as the larger communities. CoStar Group has information on over 300,000 apartment communities that is not currently on apartments.com's radar screen.
By being able to provide that sort of rich information to their team, we think that'll give them a pretty broad expansion on their target market. In addition, that group is Apartments.com is managing a lot of information around these apartment communities. There's a lot of synergy there with what CoStar is doing because CoStar is doing the exact same thing, just on a larger scale. We'll create some real efficiencies there. Also, these very same folks who are managing these apartment buildings and purchasing ads also have information needs. They need to know what's happening in the market, supply, demand characteristics, what's gonna happen when that new building delivers down the road and creates new competition. What are competitors charging for rents?
CoStar Group's products provide just that. Building stronger relationships or leveraging the apartments relationships with these building owners, we believe will bring a lot of cross-selling synergy, just like the LoopNet deal did.
Yeah. One kind of follow-up, I guess. Does this change, maybe the effort that you would expect to put against your multifamily, let's call it a vertical effort either in terms of the sales force that you would expect to, I guess, to focus on from the CoStar information platform side? Or does it change the number of researchers you wanna put against this effort? I'm just trying to figure out how, I guess, how broad this effort may get now that you've got kind of a different way to go to market with the information.
I don't think this will change. I think this creates efficiencies in our sales force deployment. The fact that there's someone who might have a tenure relationship with a community manager out there at apartments.com is gonna help us sell information service to them much more efficiently. I don't think it's gonna really change dramatically change the picture on overall sales force headcount. It may change the composition and the organizational structure. On the research side, we already have a pretty significant complement. The complement of folks have been researching for this area for quite some time. In addition, apartments.com has folks working in this. This gives us an awful lot of maneuvering room.
You know, the only area where we might have some growth or just is creating neighborhood content, but I don't think it'll really be visible on your radar screen.
Okay. Thanks a lot. Appreciate it.
Thank you. Our next question in queue will come from Andrew Jeffrey with SunTrust. Please go ahead.
Hi, guys. Good morning. Thanks for taking the question.
Good morning, Andrew.
You know, living in San Francisco, when I think about the apartment market, multifamily market, and Andy, I think you referenced it with regard to smaller units, Craigslist seems to be the leading player, I think, for both landlords as well as tenants. How does apartments.com sort of slot into the market? Is there an ability to expand the footprint and maybe go after what seems to be sort of the ubiquitous alternative for smaller properties and perhaps for individual property owners?
There sure is. I'm pretty excited about the opportunity that I think Craigslist presents. You're right. San Francisco, where you are, is the strongest market share for Craigslist. In fact, I rented an apartment off of Craigslist in San Francisco last year. When we talk to apartment owners and we talk to folks who use Craigslist, there's a fair amount of frustration with that. Apartment owners have to continuously repost all sorts of properties every other day to try to keep it in the flow of Craigslist, and it's a real frustration for them.
We actually envision modifying. We've done a lot of work pre-deal on modifying the strategy, the go-to-market strategy for Apartments.com to try to take share from a Craigslist, specifically handling those smaller one-off condo units and the like. We've put a lot of thought into it, and we think there's a great opportunity there to take an awful lot of mind share and consumer demand from that space to the benefit of our customer base. We're pretty excited about that opportunity. It's, you know, you just take a look at what's there, and you can see that that's a pretty good opportunity.
Do you anticipate that that will require incremental marketing, you know, similar to what you've talked about, for marketing spend on the emerging CoStar platform in the early part of 2014? You know, I guess, Is incremental marketing perhaps included in the synergies, or is that something that might offset some of those synergies?
At this point, we don't have any detailed plans for incremental marketing. Remember that what you're trying to do is you're trying to appeal to the consumer with the best possible experience, showing them a rich selection of choices in whatever neighborhood they go into. That is, you know, in a, in a, you know, in the, in the I don't know, you I'm thinking of a good analogy here. When we bring the content that CoStar Group has got into the apartments.com product area, it will be a order of magnitude increase in the number of apartment and rental options on the site, which we think will speak for itself with the consumers. Remember, we're showing up 57% of the time in the number 1 SEO slot.
We believe that you can actually leverage that position, improve the quality and breadth of content, allow people to post on the site, the one-off options like Craigslist, which they currently can't do for free on apartments.com. I don't think you have, you know, at this point, we don't see the need for a significant incremental spend.
Okay. Got it. It's helpful. Brian, just to clarify, when you're talking about the synergies, it seems that you're speaking about the $20 million as though it is entirely an expense synergy, in the context of your adjusted EBITDA multiple. Should we assume also that there are some revenue synergies that you're gonna garner?
Yeah. No, I mean, I think it's actually a combination of both. I think we said both cost and revenue. You know, you know, with this deal, it's a little bit different than LoopNet. We're keeping the entire management team. I think obviously there will be some cost synergies over time, so I think over the 2 years. Just like with LoopNet, I mean, we talked about this pretty extensively when we did the LoopNet acquisition, we think there's the revenue synergies are much bigger, and we're just as confident or more confident in the revenue synergies at this point announcing the transaction than we were with LoopNet. You know, we feel very, very confident in that. Yeah, I'm sort of including both of those in that number.
Okay.
Great.
Just one last one. Can you talk about what the contracts look like compared to LoopNet? Are they monthly, quarterly, annual, what are the price points like?
Sure. They are LoopNet, when we acquired LoopNet, there were basically no annual contracts. They were all month to month. These are annual contracts. There are some variance in them, but typically the annual contracts, some of them have outs at 6 months, some go month to month after the initial term. These have, this is nothing like the LoopNet. There's not a big e-commerce component here, that's, that, you know, has a 2-month, 3-month life on the business. You have a 98% monthly renewal rate with Apartments.com, where you were seeing, you know, up to a 6% cancellation rate monthly with a LoopNet. This is much more stable revenue stream. Part of that is because the customers are much bigger organizations than the typical customer at LoopNet.
Very often, you know, your customer might be somewhere the scale of Equity Residential. They're not turning off their marketing campaigns each month.
Great. Thank you.
Thank you. Our next question in queue will come from the line of Brett Huff with Stephens Inc. Please go ahead.
Good morning. Can you guys hear me okay?
We sure can.
Yes.
Good. Congrats on the deal.
Thank you very much. Appreciate it.
2 questions. 1 is, you talked a little bit about the sales force, and I was a little confused. I think you said that you don't see a big change in the sales force. I assume that meant that you're gonna add the 2 together and that you're gonna leverage that, not that the number you have on legacy CoStar will continue. First of all, I think that's Make sure that's true. I guess to me, the biggest thing that we're looking at here is just the sales force integration. I know you've been looking to hire new salespeople.
Are the sales force folks, at least some of them, the kind of folks that you were looking to hire, and will this accelerate, you know, your ability to get some of those folks trained up on some of the new products that you have as well in the legacy business?
Brett, you just said the biggest softball across home plate. As you know, I love sales forces, right? In this particular case, I've been looking to build a much stronger field presence across the United States. That's exactly what Apartments.com has. They've got 150 people in their sales organization. 75 are relationship salespeople in the market. A lot of them are very active in the multifamily marketplace, you know, leaders in the various associations and the like. Tenured folks, many of them came from the leasing role in major apartment communities. Also these folks understand a pretty good price point in internet advertising or lead generation on the internet.
They're a perfect profile for what we're doing with LoopNet and even what we're doing with Lands of America, BizBuySell and other marketplace verticals we've got. When you take the CoStar sales force running at 300 and some, and you add in 175, you take CoStar overall sales and marketing, you're at 500 and some, sales marketing customer search, you're at 500 and some. You bring in this component, you're now at, you know, approaching 700. There'll be reconfiguration of roles and structure and segmentation, but you're not looking to expand the headcount here, the overall headcount.
One of the real appeals to us, obviously, we didn't do this deal just for a sales force, but that is one of the top three, top five reasons for me for doing the deal is speed to market with a sales force.
Okay. Can you talk a little bit about, I guess, the share that Apartments.com has in its market? You know, and maybe in that answer, can you talk to us about the number of paying, you know, multifamily owners that are on that, just to get a sense of the scale of the number of leads that might be there?
You are, you know, roughly estimating you've probably got 100,000 apartment community folks responsible for marketing plans or owners of apartment communities. There's a little over 2,000-3,000 folks who are customers representing roughly 15,000-17,000 apartments for Apartments.com. You're, you know, you're probably, you know, 3% penetrated into the potential opportunity by headcount or by number of firms. Despite the fact that, you know, Apartments.com has a good solid revenue base, it still has a long way to go.
Okay. That's what I needed. Thanks again.
Thank you. As a reminder, to queue up for questions, you may press star and then one. Next in queue is William Warmington with Wells Fargo. Please go ahead.
Good morning, everyone.
Morning, Bill. How you doing?
I'm doing all right, thanks. Congratulations on the transaction.
Thank you very much.
Thanks, Bill.
A couple of questions. One is, what gives you the confidence in the regulatory picture that this one will get closed within the quarter, just having had such a long wait with the LoopNet transaction? What's different on this one?
We're much more experienced now.
Yeah, that's for sure.
We have a frequent flyer plan with the antitrust attorneys.
That's right. Well, I just, I just say the It has always seemed like something that's outside of people's control, and we've had a number of transactions use in this, in this space. We've seen Nielsen with Arbitron. Right now you've got CoreLogic waiting on MSB. All those transactions seem like They took a lot longer to close, not by virtue of anything, you know, within the control of the company management teams, but.
We're very, very confident that You know, you're right. Regulatory process is something that, you know, you have to respect that process. We believe the government will evaluate this deal and that they will see what we see, which is, at this point, there are a lot of different options for folks to advertise apartment communities on the internet. There's a pretty broad field. We would be one of a number of good competitors. You know, it's something where this is really in the early stages, and we'd be trying to gain share that was, you know, interesting enough to ever merit attention down the road. Certainly at this point, we think it'd be extremely difficult to make the argument that we are eliminating competition here.
We in fact believe we're creating some additional competition in this space. You know, you're right. We don't know exactly what will happen, but we feel pretty good about this particular situation.
Okay. A question for you also on the sales force. You had called out the 75 advertising sales execs within the 140. If you could talk a little bit about how you plan to use those to help you, or if you plan to use those to help you on the commercial real estate broker ads for LoopNet and LoopNet-related sites.
Sure. We definitely do. When I say 75, I won't go to the whole laundry list, but there are a lot of additional segmentations that are also selling ads. Like there's 10 major accounts folks in there that are not part of the 75 that deal with multi-market apartment owners. It's actually bigger than 75. You know, if you are based in Richmond, Virginia, and you are an ad salesperson with apartments.com, it is a very small evolution to go from selling someone lead generation to a person that owns 2 million sq ft of apartment commercial real estate, selling them lead generation for that, to going to someone that owns 2 million sq ft of office space commercial real estate and selling them lead generation on that.
The two sales are very similar. It uses the same size, the side of the brain. They're both relationship sales. Geography is an advantage here. Geography scale is an advantage here. We believe they absolutely will be selling both products, and we believe that will give us combining sales forces will give us revenue lift on both products. By chance, when I look at the two sales forces and where I see our best ad salespeople in the U.S., it is almost perfectly complementary. CoStar Group is really good in ad sales in the heart of the biggest U.S. cities.
in the first-tier cities. apartments.com's greatest strength is gonna be in some of the top-tier cities, but it's more in the secondary cities. We think the combination looks really good if you are the leader of that group. You've got two great teams to pull together. We'll be learning a lot of stuff from each other on strategy and tactics.
Okay. One last question for you on the synergy. The $20 million cost synergy side, given that you are keeping the management team in place, and it's more of a revenue synergy-type approach, where do the $20 million in cost synergies come from?
We're gonna lay Brian off.
Hey, Bill, it's a combination.
I know he's the man wielding the hatchet.
No, I mean, we are keeping their management team. I think over time, you know, there will be synergies between the two firms as we sort of learn more. Obviously, we've got a lot of depth and breadth on the data collection side. Similar to LoopNet, you know, these firms don't have big data collection capabilities, so they do data deals, and they do all sorts of data trades and different things that. Over time, I think we'll have savings there. The $20 million is a combination of cost and revenue, you know, which, you know, we think, you know, on a run rate basis over the next 2 years, is a very achievable goal. It's a combination of the 2, and we obviously feel very confident in that.
Having just gone through the LoopNet and being able to get both the cost and the revenue synergies, we feel pretty good about that here.
With the LoopNet, when we talked about the LoopNet, cost synergies, we did not detail for investors at any point where those were gonna come from. We also, we did not with investors, or we did not publicly discuss where those cost synergies were gonna come from. We did not do any material layoffs at LoopNet, in the, in that whole process. We were able to achieve those cost synergies, through attrition, over the time period.
Got it.
You know, we believe that there'll be that same opportunity.
Just on a side note on that, you know, there was more public company cost to pull out in LoopNet. Obviously we don't need two audits now and everything else. There was public company cost savings. If you looked at LoopNet, they had approximately 300 some employees, and today they have approximately 300 employees. As Andy said, you know, it's gonna be, you know, more over time.
Excellent. Thank you for the insight.
Thank you.
Thank you very much.
Thank you. At this time, there's no additional questions in queue. Please continue.
All right. Well, thank you, everyone, for joining us on this special acquisition call for apartments.com, and we look forward to answering any questions that may come up over the weeks and months that follow. We're very excited about this opportunity. Thank you for joining us.
Thank you. Ladies and gentlemen, that does conclude your conference call for today. We do thank you for your participation and for using AT&T's executive teleconference. You may now disconnect.