CoStar has purchased Ten-X, owner of ten-x.com, a website for real estate transactions with up to $24 billion in sales executed on the platform.
CoStar’s CEO Andrew Florance stated, “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.”
Why It Matters
CoStar Group stated that it is the operator of the most heavily trafficked online marketplaces for commercial properties and land for lease and sale in North America and Europe. It had 10 million monthly visitors on its websites LoopNet.com and CoStar.com, as of April 2020.
Ten-X has emerged as a “trusted online platform for bankers” across the United States. Financial institutions using the platform include the Federal National Mortgage Association (OTC: FNMA), Bank of America (NYSE: BAC) and JPMorgan Chase & Co. (NYSE: JPM).
Ten-X Commercial’s 2019 unaudited financial statements indicate revenue of approximately $57 million. Revenue for Q1 2020 stood at $13 million, an increase of 35% compared with Q1 2019. Operating profit was nill.
The transaction is expected to be closed in Q3 2020 and will not have a material impact on CoStar Group’s adjusted EBITDA for the year.
CoStar shares traded 0.81% higher at $620 in the after-hours session on Wednesday. The shares had closed the regular session 3.42% lower at $615.02.