Compass, one of the leading U.S. real-estate brokerages, has announced its agreement to acquire rival Anywhere Real Estate for $1.6 billion in an all-stock deal, signaling a new wave of consolidation in the residential brokerage industry.
The merger would combine two of the country’s largest brokerages, creating an enterprise valued at approximately $10 billion, including debt. Compass, with roughly 40,000 agents, and Anywhere, which has about 51,000 agents at its owned brokerages and another 250,000 agents at franchises, are currently the first- and second-largest brokerages by volume in 2024, according to RealTrends.
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Anywhere, based in Madison, N.J., oversees well-known brands including Century 21, Coldwell Banker, Corcoran, and Sotheby’s International Realty. Compass, headquartered in New York with a market value of around $5 billion, will value Anywhere shares at $13.01 each—an 84% premium over the company’s recent stock close—and assume $2.6 billion of Anywhere’s debt, net of cash.
The acquisition comes as the residential real-estate market faces a prolonged slowdown. Home sales have dropped sharply since mortgage rates surged in 2022, prompting smaller brokerage firms nationwide to sell to larger competitors.
By acquiring Anywhere, Compass gains broader exposure to international markets and complementary revenue streams, including title insurance, escrow, and relocation services. The deal aligns with a growing industry trend of brokerages becoming one-stop solutions for buyers and sellers, similar to moves by mortgage giant Rocket, which acquired Redfin earlier this year.
Compass CEO Robert Reffkin said, “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.”
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Despite the merger, the combined company would still control less than 25% of the U.S. home-sales market, which remains highly fragmented, with over 100,000 firms operating nationwide.
Anywhere, formerly Realogy, has long struggled under a large debt burden, with a market value near $800 million. Compass, founded in 2012, has pursued multiple acquisitions, including last year’s $444 million purchase of Christie’s International Real Estate and @properties, the eighth-largest brokerage by volume.
The deal could also strengthen Compass’s strategy of offering exclusive listings, a practice that encourages sellers to initially limit access to Compass agents and clients. While controversial, this approach aims to give Compass agents a competitive advantage in select markets. The company is currently pursuing legal action against Zillow and a Seattle multiple-listing service over listing restrictions, which it claims violate its business model.
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