The M&As Continue

We’ve seen big technology acquisitions when Ellie Mae bought Velocify and CoreLogic bought Mercury Network, but let’s not forget to look at the lending side of the business, as well. For example, Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in middle market growth companies, acquired 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.

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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.

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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.”

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“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.

I’m sure we’ll see more deals like this before the year closes. Stay tuned …

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.