WASHINGTON, DC⁠—CoStar Group has announced that it is acquiringTen-X for $190 million in cash.

When the acquisition is complete, CoStar will have an end-to-endreal estate platform that combines LoopNet and CoStar's onlineaudience of buyers with Ten-X's online auctions for both performingand distressed assets, said CoStar Group CEO Andrew Florance inprepared remarks. "In the aftermath of the economic disruptionwhich is being caused by the global pandemic, we believe that thevolume of distressed properties coming to market will surge andthat this combined platform will support the market's recovery," headded.

Ten-X launched in 2009 as a digital transaction platform toliquidate the large volume of distressed commercial real estateassets that came on the market during the Great Recession. Sincethe, the company has become a major platform for digital commercialreal estate transactions with close to $24 billion dollars of salesexecuted. While Ten-X initially focused on distressed assets,non-distressed sellers and brokerage firms also use Ten-X totransact properties. Fannie Mae, Bank of America, JP Morgan Chase,Blackstone, Starwood, BlackRock, Capital One, MetLife, LNR, UBS,PNC, and SunTrust are among the platform's users.

Once the acquisition is complete, CoStar Group will integratethe Ten-X digital transaction platform into both LoopNet andCoStar.

The companies expect this integrated product will boost onlinecommercial real estate transactions.

"Today, only 1% of all commercial real estate sales transactionstake place online," Ten-X CEO Steve Jacobs said in preparedremarks.

The transaction is expected to close in the third quarter of2020, subject to customary closing conditions and regulatoryreview. Assuming the transaction closes in the third quarter of2020, Ten-X is not expected to have a material impact to CoStarGroup Adjusted EBITDA for the year.

Ten-X was acquired by investment funds affiliated with Thomas H.Lee Partners, L.P. and certain co-investors in September 2017, aspart of a broader acquisition of a holding company that ownedTen-X, Auction.com and a business formerly known as Ten-X Homes.Following such acquisition, Ten-X was separated from the otherbusinesses. CoStar's acquisition does not include such otherbusinesses. Investment funds affiliated with Thomas H. LeePartners, L.P. and certain co-investors continue to ownAuction.com.