Compass and Anywhere Real Estate have announced a definitive merger agreement to combine in an all-stock transaction with an expected enterprise value of approximately $10 billion, including debt assumption. The combination pairs Compass’ technology investments and innovative marketing offerings with Anywhere’s leading brands, broader complementary businesses, and global reach to create a premier real estate platform serving approximately 340,000 real estate professionals globally across every major U.S. city and 120 countries and territories. (View Highlight)
“Today marks a monumental step towards our mission to empower real estate professionals with everything they need to grow their business and better serve their clients,” said Robert Reffkin, Compass CEO & Founder. “By bringing together two of the best companies in our industry, while preserving the unique independence of Anywhere’s leading brands, we now have the resources to build a place where real estate professionals can thrive for decades to come.” Ryan Schneider, Anywhere CEO & President, added: “We have a unique opportunity to utilize the incredible breadth of talent across our companies to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience.” (View Highlight)
The transaction is expected to diversify Compass by adding over 1billioninrevenuefromAnywhere’sestablishedfranchise,titleandescrow,andrelocationoperations,whileprovidingaccesstoapproximately1.2millioncombinedtransactionsannually.Compassanticipatesachieving225+ million in non-GAAP OPEX synergies, which together with improved cost and debt profiles are expected to drive significant free cash flow and strengthen the combined balance sheet.
The merger has received unanimous approval from both companies’ boards of directors, with Robert Reffkin set to lead the combined company upon closing. Compass has secured a $750 million financing commitment from Morgan Stanley Senior Funding and expects to prioritize deleveraging post-close with a goal of reaching net leverage of approximately 1.5x Adjusted EBITDA by year-end 2028, positioning the combined entity as a dominant force in residential real estate services. (View Highlight)
