CoStar Group, Inc. has acquired digital transaction platform Ten-X for $190 million in cash, the company announced.
Launched in 2009, Ten-X has executed nearly$24 billion in commercial real estate transactions on its platform. Ten-X accelerates the property sales process by qualifying and independently evaluating the assets, identifying likely buyers from a database of 400,000 buyers from 73 countries, qualifying the bidders and funds, providing a digital auction process, and managing online escrow.
CoStar Group operates the most heavily trafficked online marketplace for commercial properties and land for lease and sale in North America and Europe with 10 million monthly visitors in April 2020 to its websites including LoopNet.com and CoStar.com.
Once the acquisition is complete, CoStar Group said it will integrate the Ten-X digital transaction platform directly into both LoopNet and CoStar. The transaction is expected to close in the third quarter of 2020.
“Together, Ten-X and CoStar plan to create a new end-to-end commercial real estate platform, combining LoopNet and CoStar’s unmatched online audience of buyers with Ten-X’s clear leadership in online auctions for both performing and distressed assets,” CoStar Group CEO Andrew Florance said in a release.
“Combining our complementary capabilities is expected to create significant benefits for brokers and the institutions they represent by exposing their properties for sale to the biggest pool of potential bidders on the most trusted digital transaction platform and delivering fast and reliable trade execution,” Florance said. “In the aftermath of the economic disruption which is being caused by the global pandemic, we believe that the volume of distressed properties coming to market will surge and that this combined platform will support the market’s recovery.”