CoStar Group, Inc. has completed the previously announced acquisition of Ten-X for $190 million in cash.
“We are pleased that we were able to close on our acquisition of Ten-X so quickly and we look forward to getting to work on combining the strengths of Ten-X with the strengths of CoStar Group to make the platform even more valuable for our brokers and the institutions they represent.” said Andy Florance, CEO of CoStar Group.
Ten-X is a leading platform for commercial real estate online auctions and negotiated bids, having successfully facilitated $24 billion in transactions since 2009.
Ten-X partners with commercial real estate brokers providing them with technology that makes them more efficient, reduces the time to sale, and speeds commission payments. All the transactions conducted on the Ten-X platform require a broker and since inception the platform has helped brokers earn close to one billion dollars in fees. The broker remains the seller’s primary point of contact, relationship manager and the expert with invaluable information necessary for buyers to underwrite and purchase an asset.
CoStar Group plans to integrate the Ten-X auction platform into both LoopNet and CoStar, thereby exposing the auctions to CoStar Group’s online commercial real estate audience with 11 million monthly visits.
The integrated offering will expand the audience for Ten-X auctions up to 40 times its current scope.
CoStar Group has the largest global commercial real estate database and research operation and intends to use those resources to enhance and dramatically expand the potential buyer database Ten-X uses to draw bidders to its auctions.
In addition, CoStar Group has 280,000 properties offered for sale on its platforms and plans to market the Ten-X platform as an alternative sales method for those brokers. We believe that more properties offered for sale on the Ten-X platform will attract more bidders.