The transaction is valued at approximately $444 million, including $150 million in cash and $294 million in stock. If passed, it will result in a merger between the nation’s No. 1 securities company and the No. 8 securities company in terms of sales.
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Compass will acquire Christie’s International Real Estate and At Properties in a deal valued at $444 million, the companies announced in a statement Monday.
If the acquisition is approved, it will result in the merger of the No. 1 brokerage firm by revenue and the nation’s 8th largest brokerage firm.
The companies said the sale is pending and is not expected to close next year. Compass representatives said on a conference call with investors Monday that the brands will remain separate “for the foreseeable future.”
“This partnership will empower powerful independent brokerage firms and broker-owner entrepreneurs around the world that are affiliated with Christie’s International Real Estate,” Compass CEO Robert Refkin said in a statement. I can give.” “Our companies share the same passion for empowering entrepreneurial agents.Together, we provide unparalleled resources and support so everyone can succeed and excel. We will be able to provide a better customer experience.”
Compass announced it would pay $150 million in cash and $294 million in stock, or 44 million Compass shares. The deal includes a $50 million “collar” to protect shareholders, depending on the price of Compass stock one year after the deal closes.
@properties has the largest market share in Chicago and operates throughout the Midwest and Atlanta, Georgia. The company has also begun expanding into luxury markets, including in Park City, Utah, and overseas. @properties acquired Christie’s International Real Estate in November 2021.
Levkin said Monday that the merger will give both companies the best technology for agencies.
“Looking at other companies besides Compass, we believe @properties is the company that has built the best technology for agents,” said Levkin. “I’m very excited that we can get the best of both worlds.”
He said the acquisition allows the company to focus on serving broker owners, which is an evolution for Compass.
“Everything Compass stands for is empowering entrepreneurs. So far, we have focused on agent entrepreneurs,” he said. “This will expand the company to serve independent broker-owner entrepreneurs.”
Christie’s International Real Estate focuses on 50 countries and territories.
Compass said @properties’ Northern California operations will become an independent brokerage “while remaining affiliated with the network.”
@properties Christie’s International Real Estate co-CEOs Thad Wong and Mike Golden will continue to operate the existing brand, Compass officials said.
“Compass shares our commitment to strengthening the real estate industry through technology, marketing and service excellence and embracing local independent brokers through our Christie’s International Real Estate and @Property brands,” said Wong. Ta.
“This is a highly complementary union that honors our unique brand and allows our agents to deliver an even better experience for the clients they serve,” Golden added in a statement. .
The contract also included a “proper rate” and “proper title” for the mortgage company and title company.
Compass said it will continue to grow internationally and in the United States after the sale.
Compass has been a listed company since 2021. The company announced Monday in a filing with the U.S. Securities and Exchange Commission that it entered into a merger agreement with @properties and Christie’s on Nov. 25, which was unanimously approved by its board of directors. merger.
This post will be updated.
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