Thomas H. Lee Partners LP has acquired a majority stake in California-based Ten-X, an online real estate marketplace. No financial terms were disclosed. As a result of the deal, Stone Point Capital and CapitalG will retain their minority stakes in Ten-X. Wells Fargo Securities LLC and J.P. Morgan Securities LLC were financial advisers to Ten-X while Guggenheim Securities did likewise for THL.
Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in middle market growth companies, announced today that it has closed the acquisition of a majority interest in Ten-X, LLC (the “Company” or “Ten-X”), the nation’s leading online real estate marketplace. Members of Ten-X’s senior management team, Stone Point Capital, and CapitalG (formerly Google Capital), among others, will continue to hold minority positions in the Company. Terms of the transaction were not disclosed.
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 online. Since its inception, Ten-X has enabled over $50 billion of residential and commercial property sales on its platform.
The recapitalization will ensure Ten-X has the resources it needs to build on its proven platform, pursue additional monetization opportunities, and execute on its growth objectives. The Company will retain its corporate headquarters in Irvine and Silicon Valley, and will continue to be led by Chief Executive Officer Tim Morse along with other members of its senior management team.
“This investment gives us the scale and resources to accelerate our growth and further expand our platform and product offerings,” said Mr. Morse. “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.”
“We are very excited to be partnering with Ten-X, a clear market leader in the real estate industry,” said Jim Carlisle, Managing Director at THL. “We are looking forward to working closely with Tim and the talented management team at Ten-X to further enhance its leadership position and maximize this incredible growth opportunity.”
Wells Fargo Securities LLC and J.P. Morgan Securities LLC acted as financial advisors and Kramer Levin Naftalis & Frankel LLP acted as legal advisor to Ten-X. Guggenheim Securities acted as 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.