Brokerage Compass is set to become the largest real estate firm after buying Anywhere Real Estate in a deal valued at US$4.2 billion (A$6.37 billion).
The transaction is expected to add over $1 billion in revenue to Compass’ topline from Anywhere’s established franchise, title and relocation.
According to the companies, the combined company is estimated to have an enterprise value of around $10 billion.
Anywhere CEO and president Ryan Schiender said the merger will increase their international footprint and build a better real estate experience.
"We have a unique opportunity to utilise the incredible breadth of talent across our companies, especially our world-class agents and franchisees, to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience,” Schnieder said.
Compass will pay $13.01 per share to Anywhere stockholders, representing a premium of 84%.
According to Compass, the merger will expand its presence to every major U.S. city and 120 countries, with a combined workforce of 340,000 real estate professionals globally.
“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,” Compass CEO and founder Robert Reffkin said.
The merger comes as the U.S. real estate market has weakened to three-decade lows, as affordability concerns may price buyers out of the market.
However, Compass has continued to thrive as the company reported a 21% year-over-year rise in transactions for the second quarter, despite a slight decline in overall market transactions. Revenue for the company was also up 21% to $2.06 billion.
Following the merger, Compass expects operating costs to drop by $255 million for both companies through combining key operations and eliminating redundancies.
The merger is set to close in the second half of 2026, pending approval from shareholders and regulators.
Anywhere (NYSE: HOUS) shares jumped 45.5% during Monday's U.S. session to US$10.29, while Compass (NYSE: COMP) shares fell 15.7% to US$7.92.
