CoStar Group Closes Acquisition of Ten-X Commercial, the Leading Digital Auction Platform for Commercial Real Estate
June 24 2020 - 9:02AM
Business Wire
CoStar Group, Inc. (NASDAQ: CSGP) the leading provider of
commercial real estate information, analytics and online
marketplaces, announced today that it 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 the clear, leading platform for conducting 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.
Sellers on the Ten-X platform benefit from proven technology
that exposes their property to a global audience of qualified
buyers, with trusted underwriting, transparency from seller
dashboards, real-time updates, and proven contracting and closing.
The mission of the Ten-X platform is to sell the property faster,
at the best price possible and with greater certainty of close.
CoStar Group plans to integrate the Ten-X auction platform into
both LoopNet and CoStar, thereby exposing the auctions to CoStar
Group’s massive 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.
The transaction is expected to be discussed on the Company’s
conference call to discuss financial results for the second quarter
of 2020 to be held at 5:00 PM ET on Tuesday, July 28, 2020.
About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of
commercial real estate information, analytics and online
marketplaces. Founded in 1987, CoStar conducts expansive, ongoing
research to produce and maintain the largest and most comprehensive
database of commercial real estate information. Our suite of online
services enables clients to analyze, interpret and gain unmatched
insight on commercial property values, market conditions and
current availabilities. STR provides premium data benchmarking,
analytics and marketplace insights for the global hospitality
sector. LoopNet is the most heavily trafficked commercial real
estate marketplace online with over 6 million monthly unique
visitors. Realla is the UK’s most comprehensive commercial property
digital marketplace. Apartments.com, ApartmentFinder.com,
ForRent.com, ApartmentHomeLiving.com, Westside Rentals,
AFTER55.com, CorporateHousing.com, ForRentUniversity.com and
Apartamentos.com form the premier online apartment resource for
renters seeking great apartment homes and provide property managers
and owners a proven platform for marketing their properties. CoStar
Group’s websites attracted an average of approximately 55 million
unique monthly visitors in aggregate in the first quarter of 2020.
Headquartered in Washington, DC, CoStar maintains offices
throughout the U.S. and in Europe, Canada and Asia with a staff of
over 4,200 worldwide, including the industry’s largest professional
research organization. For more information, visit
www.costargroup.com.
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about CoStar's plans, objectives, expectations, beliefs and
intentions and other statements including words such as “hope,”
“anticipate,” “may,” “believe,” “expect,” “intend,” “will,”
“should,” “plan,” “estimate,” “predict,” “continue” and “potential”
or the negative of these terms or other comparable terminology.
Such statements are based upon the current beliefs and expectations
of management of CoStar and are subject to many risks and
uncertainties. Actual results may differ materially from the
results anticipated in the forward-looking statements and the
assumptions and estimates used as a basis for the forward-looking
statements. The following factors, among others, could cause or
contribute to such differences: the risk that the businesses of
Ten-X and CoStar may not be combined successfully or in a timely
and cost-efficient manner, including integration of the Ten-X
platform into LoopNet and CoStar; the possibility that the volume
of distressed properties coming to market will not be as expected;
the risk that business disruption relating to the Ten-X acquisition
may be greater than expected; the risk that synergies as a result
of the acquisition of Ten-X may not be as expected, may not be
fully realized, or may take longer to realize than expected; the
risk that the acquisition does not produce the expected results for
CoStar and Ten-X (or their customers), including an expanded buyer
database to draw bidders for auctions; the risk that CoStar’s
business plans may change; and the risk that the combination and
integration of Ten-X will disrupt CoStar’s or Ten-X’s operations or
result in the loss of customers or key employees. More information
about potential factors that could cause results to differ
materially from those anticipated in the forward-looking statements
include, but are not limited to, those stated in CoStar’s filings
from time to time with the Securities and Exchange Commission,
including in CoStar’s Annual Report on Form 10-K for the year ended
December 31, 2019, and CoStar’s Quarterly Report on Form 10-Q for
the quarter ended March 31, 2020, each of which is filed with the
SEC, including in the “Risk Factors” section of those filings, as
well as CoStar’s other filings with the SEC available at the SEC’s
website (www.sec.gov). All forward-looking statements are based on
information available to CoStar on the date hereof, and CoStar
assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200624005481/en/
Scott Wheeler Chief Financial Officer (202) 336-6920,
swheeler@costar.com
Sarah Spray Investor Relations (202) 346 6394,
sspray@costar.com
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