A Billion Dollar Deal… Isolated Transaction or the Start of Something Big???

In case you missed it, Ten-X sold a controlling stake to private equity powerhouse Thomas H. Lee Partners for more than $1billion last week! Holy shit, that’s a big friggin number. I wasn’t surprised actually. Not that I had any advance knowledge or that I am some kinda guru or anything, just felt it in the air.

I knew that Ten-X/Auction.com was a thriving company, very profitable and generated hundreds of millions in revenue annually. I knew that their management team was solid. I knew that their product had huge upside. I knew that the private equity/VC world was paying big time attention to the commercial real estate tech sector. Anyone who is really paying attention to the sector knows this too.

Ten-X is extremely well positioned. Their marketplace product is among the most underutilized but also most promising platforms in the sector. And I mean that in a complementary way. The commercial real estate market is just starting to wake up to the power of online transactional platforms. Ten-X has a solid business. And now with all of this additional capital, they are only going to get bigger and penetrate the market even further.

For me, this is a huge deal for two reasons:

  1. It says that the world’s biggest investors are circling, studying and positioning themselves to invest in the commercial real estate tech sector.
  2. With this additional capital, it means that companies like Ten-X are going to be way out in front of the pack and that it’s going be increasingly hard for less well-capitalized companies to compete on this scale.

And so, in my opinion, this is indeed the start of something BIG!!!

(P.S. - Thanks to my friend and fellow blogger Jeremy Neuer for slugging this post.)

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