Private equity firm Thomas H. Lee Partners (THL) closed the acquisition of a majority stake in Ten-X, a US-based online real estate portal backed by internet and technology group Alphabet, yesterday.
The amount paid by THL was not disclosed, but the deal valued Ten-X at $1.6bn, people familiar with the matter told the Wall Street Journal. Alphabet’s growth capital unit CapitalG and private equity firm Stone Point Capital will retain minority stakes in the company.
Founded in 2007 as Auction.com, Ten-X operates an online commercial and residential realty marketplace that makes use of a proprietary technology platform and a network of international buyers and investors.
The platform has been responsible for the sale of more than 300,000 properties totalling more than $50bn in value. THL’s investment will fund company growth, the further development of Ten-X’s core platform and the exploration of other monetise optionsfor the service.
CapitalG, then known as Google Capital, invested $50m in Ten-X in 2014 at a $1.2bn valuation. The company had raised $91.7m the year before, according to regulatory filings, and its investors at that time included Stone Point and Starwood Capital Group.
Ten-X CEO Tim Morse said yesterday: “This investment gives us the scale and resources to accelerate our growth and further expand our platform and product offerings.
“With the support of THL as a partner going forward, we can fully execute on our vision, build on our position as a leader in the online real estate market and continue to provide our customers innovative products and services.”
Wells Fargo Securities and JP Morgan Securities were Ten-X’s financial advisors for the deal while Kramer Levin Naftalis & Frankel was legal advisor. Guggenheim Securities was financial advisor for THL and Kirkland & Ellis legal advisor.