Compass, the largest U.S. residential real estate broker, is set to buy Anywhere Real Estate in a deal valued at $4.2 billion, as it looks to strengthen its portfolio amid rising competition in the stagnating housing market.
Elevated mortgage rates and resulting consumer affordability challenges in the U.S. have pressured profitability for homebuilders and real estate firms in recent quarters.
Earlier this year, Compass sued online real estate portal Zillow, accusing it of employing an “exclusionary” policy designed to steer all U.S. home listings to Zillow’s platform, and ensure that the company can maintain a monopoly while boosting profit.
The all-stock deal with Anywhere will add over $1 billion in revenue from its franchise, title and escrow, and relocation operations to Compass’ topline, the companies said on Monday.
“Real estate is a volume game & the transaction creates a clear leader with about 340K agents,” said BTIG analyst Jake Fuller.
The transaction is expected to close in the second half of 2026.
Compass will pay $13.01 per share to Anywhere shareholders, representing a premium of 84% to the stock’s last close. Anywhere’s shares soared 49% in Monday trading to $10.48, while those of Compass fell 14%.
Each share of Anywhere common stock will be exchanged for 1.436 class A shares of Compass, resulting in an equity value of about $1.6 billion, according to Reuters calculations.
Madison, New Jersey-based Anywhere provides real estate services including franchise, brokerage, relocation and title and settlement through more than 30,000 affiliated agents across 119 countries.
The combined company is expected to have an enterprise value of about $10 billion, including debt.
Morgan Stanley is serving as the financial adviser to Compass, and Goldman Sachs is advising Anywhere on the deal.
Source: Reuters.com