Prime Highlights:
- Compass will acquire Anywhere Real Estate in a $1.5 billion all-stock deal, combining major brokerage brands like Century 21, Coldwell Banker, and Sotheby’s International Realty.
- The merger will expand Compass’ network of real estate agents from 40,000 to around 340,000 globally, boosting revenue and market presence.
Key Facts:
- Anywhere shareholders will receive about 1.4 Compass shares per share, valuing Anywhere at $13.01 per share, an 84% premium over its last closing price.
- The combined company is expected to have a total value of roughly $10 billion and capture around 18% of the U.S. residential real estate market.
Key Background:
New York-based real estate company Compass has announced it will acquire rival Anywhere Real Estate in an all-stock deal valued at approximately $1.5 billion, creating one of the largest residential real estate networks in the United States. The combined company is expected to have a total value of around $10 billion, including debt.
The merger brings together major brokerage brands under a single umbrella, including Century 21, Coldwell Banker, Better Homes and Gardens, Corcoran, ERA, and Sotheby’s International Realty. Anywhere Real Estate, headquartered in Madison, New Jersey, also operates relocation, title, and settlement businesses, which are expected to add over $1 billion in revenue to Compass’ operations.
Shares of Anywhere Real Estate surged more than 48% in Monday trading following the announcement, while Compass shares fell about 16%. Under the deal, Anywhere shareholders will receive roughly 1.4 Compass shares per share of Anywhere, valuing each Anywhere share at $13.01, representing an 84% premium over its previous closing price.
Compass, which runs its own real estate brokerage and technology platform for agents, aims to expand its network of real estate professionals from 40,000 to approximately 340,000 worldwide. The merger will also enable Compass to broaden its platform’s capabilities, including marketing home listings privately before they reach the wider market, a practice known as pocket listings.
Robert Reffkin, CEO and founder of Compass, said that combining the two companies will strengthen their position in the industry while keeping Anywhere’s well-known brands independent. He added that the merger will give them the tools and resources to support real estate professionals for many years.
The deal shows how U.S. real estate companies are joining forces, especially as higher mortgage rates and rising home prices have made the market tougher. Experts say the new combined company could control about 18% of the market, making it a major player.
Recent months have seen similar activity, including Rocket Cos.’ acquisitions of Mr. Cooper and Redfin, reflecting a broader trend of mergers aimed at strengthening companies amid a slow housing market.
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