Thomas H. Lee To Buy Controlling Stake In Online Real Estate Marketplace Ten-X For $1B
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Online real estate marketplace Ten-X has agreed to sell a controlling stake in the company to private equity firm Thomas H. Lee Partners for more than $1B.
Though the company has been fairly hush-hush regarding terms of the deal, THL said in a release its goal is to offer financial support to grow Ten-X’s operations and resources. Ten-X leadership, which includes Stone Point Capital and CapitalG (formerly Google Capital) will continue to hold minority stakes in the company.
The Irvine, California-based platform, which allows companies to buy and sell real estate online, has completed $50B worth of property sales since its 2007 inception. The company will remain located in both Irvine and Silicon Valley, led by CEO Tim Morse.
Real estate tech companies are catching fire as the industry, which has been somewhat slow in its tech adoption, grows increasingly aware of the cost and time-saving benefits of PropTech. Just last week, Seattle-based PropTech company Redfin went public after 13 years in business, pricing $21.72/share on the close of July 28, 45% higher than its expected $15/share. This resulted in a market cap of $1.73B.
“After thoughtful consideration, we determined that THL is the right equity partner for Ten-X,” Morse said. “They have an exceptional history of investing in growth-oriented businesses, such as Ten-X, and we firmly believe that they will allow us to reach our full potential and help us build on our leading position in the online real estate market.”
The deal was facilitated by financial advisers J.P. Morgan Securities and Wells Fargo Securities. The transaction will close in Q3.
CORRECTION, AUG. 4, 11:09 A.M. ET: A previous version of this story did not clarify that Thomas H. Lee Partners will be acquiring a majority stake in Ten-X. The story and headline have been updated.