Clover Holdings was chosen from among 12 bidders after making the "highest and best offer."
The company reportedly is based In the Caribbean island of Saint Vincent, but no other details have been made available.
Escom LLC, which filed for Chapter 11 bankruptcy, was forced to sell the high-profile domain at auction using Sedo, which will take a cut of the sale.
“Sex” continues to be one of the most searched for terms on the web and its mainstream appeal has grown exponentially over the past few years, according to Sedo.
Sedo says that the new owner of this domain will enjoy a clear competitive advantage as a market leader, dramatically enhanced organic search rankings, tremendous traffic generated from direct navigation and an ability to drive online marketing and branding initiatives.
Escom scooped up the domain name in 2006 for an estimated $14 million.
The sale, which was conducted privately, needs court approval. A hearing has been set for Oct. 27 at U.S. Bankruptcy Court in Woodland Hills, Calif.