CoStar Group Closes Acquisition of Ten-X Commercial, the Leading Digital Auction Platform for Commercial Real Estate
WASHINGTON - June 24, 2020 - 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.
Investor Contacts:
Scott Wheeler
Chief Financial Officer
(202) 336-6920
swheeler@costar.com
Sarah Spray
Vice President, Investor Relations
(202) 346-6394
sspray@costar.com
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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.
