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  • Writer's pictureHahn Lee

CoStar: Serial Acquirer

July 7, 2020

CoStar is an acquisitive company. In 2020 so far, the Company has announced two major acquisitions: 1) RentPath and 1) Ten-X. Both of the acquired companies have been valued in excess of $1 billion in recent years, so CoStar is purchasing each company at a modest valuation. Below is a summary of the key terms for each announced deal.



Ten-X Commercial is an end-to-end transaction platform for commercial real estate, powering more than 90% of online CRE sales. The platform empowers brokers, sellers and buyers with data-driven technology and comprehensive marketing tools to expand market visibility and decrease time to close. With Ten-X, brokers and sellers tap into a digital platform that makes it easy to onboard assets, evaluate the success of complimentary marketing campaigns in real-time and follow up on the strongest pre-qualified leads. Buyers are precision-matched with properties aligned with their investment goals, with unprecedented access to market analysis and due diligence documents to help them securely acquire properties online, with confidence.

Ten-X Acquisition - Key Deal Terms

  • Announcement Date: May 13, 2020.

  • Seller: Thomas H. Lee Equity Fund VII. In Oct. 2017, Thomas H. Lee Partners acquired a majority interest in Ten-X, LLC for reportedly more than $1 billion. Members of Ten-X’s senior management team, Stone Point Capital, and CapitalG (formerly Google Capital), among others, continued to hold minority positions in the company.

  • Consideration: $190 million in cash.

  • Termination: Either party may terminate the agreement under certain circumstances including if the transaction is not consummated by Aug. 31, 2020 (which date may be extended to Nov. 29, 2020).



RentPath is “a leading digital marketing solutions company that empowers millions nationwide to find apartments and houses for rent. Through its brands (ApartmentGuide,, and Lovely), RentPath continues to simplify the apartment search experience while driving quality advertiser leads that result in occupancies and a high return on investment. With powerful online and mobile solutions that provide prospective renters with the information and tools they need, RentPath connects consumers with a home that reflects their personal lifestyles.”

RentPath Acquisition - Key Deal Terms

  • Announcement Date: Feb. 11, 2020.

  • Sellers: TPG, Providence Equity. Providence acquired 50% of RentPath in 2014 from TPG. TPG acquired RentPath in July 2011 from KKR for $525 million, including debt.

  • Structure: Asset purchase.

  • Consideration: $587.5 million in cash.

  • Excluded Assets: Certain assets and certain liabilities related to RentPath’s business of providing digital media services to clients in the residential real estate business

  • Termination: Either party may terminate the agreement under certain circumstances including if the transaction is not consummated by Aug. 11, 2020 (which date may be extended to Feb. 10, 2021).

  • Termination Fee: CoStar is required to pay RentPath a cash termination fee of $58.75 million (10% of the purchase price) if antitrust approvals are not obtained or a governmental order related to antitrust or competition matters prohibits the consummation of the transaction.

More to come…


(Sources: company filings and websites)

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