Thomas H. Lee Partners Invests in Ten-X, Nation's Leading Online Real Estate Marketplace
Transaction to Support Next Phase of Growth for Ten-X
IRVINE, CA & BOSTON, MA - August 2, 2017- Ten-X, LLC,
(the "Company" or "Ten-X") the nation's leading online real estate
marketplace, and Thomas H. Lee Partners, L.P. ("THL"), a premier
private equity firm investing in middle market growth companies,
announced today that they have signed a definitive agreement under
which affiliates of THL will lead a majority recapitalization of
Ten-X. Members of Ten-X's senior management team, Stone Point
Capital, and CapitalG (formerly Google Capital), among others,
which currently are investors in Ten-X, will continue to hold
minority stakes in the Company. Terms of the transaction were not
disclosed. The transaction is expected to close in the third
quarter of 2017, subject to customary closing conditions.
Founded in 2007 and headquartered in Irvine and Silicon Valley,
California, Ten-X provides an online real-estate marketplace that
allows individuals and investors to buy and sell residential and
commercial real-estate properties using both desktop and mobile
channels. By leveraging its market leading technology platform and
extensive international network of buyers, Ten-X empowers
consumers, investors and real estate professionals with
unprecedented levels of flexibility, control and simplicity to
easily complete real estate transactions entirely online. Since its
inception in 2007, Ten-X has enabled over $50 billion of
residential and commercial property sales on its platform.
THL will support Ten-X's continued growth by contributing
operational and financial resources and strategic expertise as the
Company builds on its proven platform, pursues additional
monetization opportunities, and executes on its growth objectives.
The Company will retain its corporate headquarters in Irvine and
Silicon Valley and will continue to be led by its Chief Executive
Officer, Tim Morse, and the other members of its senior management
"After thoughtful consideration, we determined that THL is the
right equity partner for Ten-X," said Mr. Morse. "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. I am also pleased that our
management team and existing investors will retain an ownership
position in the business as we continue to provide our customers
with best-in-class solutions."
"We are thrilled to partner with THL as we enter an exciting,
new chapter in Ten-X's history that is focused on expanding our
reach and broadening our product and marketplace offerings," said
Ten-X's Executive Chairman, Jeff Frieden. "We also believe that the
THL team shares the same core values and commitment to excellence
that have made Ten-X the established leader in the online
marketplace segment, making them the ideal cultural fit."
"Tim Morse and Ten-X's experienced management team have created
a transformational market leader in the real estate industry. The
Company's best-in-class online platform creates better outcomes for
both buyers and sellers and we believe there are multiple levers
for substantial growth as online penetration continues in the real
estate market," said Jim Carlisle, Managing Director at THL. "THL's
effort included leadership from across the Firm, including our
Media, Information Services and Technology Group, our Business and
Financial Services Group and our Strategic Resource Group. We all
look forward to partnering with Jeff and Tim to further strengthen
Ten-X's unique online platform."
J.P. Morgan Securities LLC and Wells Fargo Securities acted as financial advisors and Kramer Levin Naftalis & Frankel LLP acted as legal advisor to Ten-X. Antares Capital and Guggenheim Securities will lead the debt financing. Guggenheim Securities also acted as a financial advisor and Kirkland & Ellis LLP acted as legal advisor to THL.
Ten-X is the nation's leading online real estate transaction marketplace and the parent to Ten-X Commercial, Auction.com, and Ten-X Homes. To date, the company has sold 300,000+ residential and commercial properties totaling over $50 billion. Leveraging desktop and mobile technology, Ten-X allows people to safely and easily complete real estate transactions online. Ten-X is headquartered in Irvine and Silicon Valley, Calif., and has offices in key markets nationwide. For more information, visit Ten-X.com.
About Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners, L.P. ("THL") is a premier private equity firm investing in middle market growth companies, headquartered in North America, exclusively in four industry sectors: Business & Financial Services, Consumer & Retail, Healthcare, and Media, Information Services & Technology. Using the firm's deep domain expertise and the internal operating capabilities of its Strategic Resource Group, THL seeks to create deal sourcing advantages, and to accelerate growth and improve operations in its portfolio companies in partnership with management teams.
Since its founding in 1974, THL has raised over $22 billion of equity capital, acquired over 140 portfolio companies and completed over 360 add-on acquisitions which collectively represent a combined enterprise value at the time of acquisition of over $200 billion.
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