Compass, Inc. and Anywhere Real Estate Inc. have announced a significant merger in an all-stock transaction that will create a powerhouse within the real estate industry, boasting an enterprise value of approximately $10 billion. This merger combines Compass’ technological innovations and marketing offerings with Anywhere’s renowned brands and global reach, essentially forming a premier platform tailored to empower real estate professionals and better serve clients.
The merger will see Compass blending its tech-driven services with Anywhere’s comprehensive suite of real estate operations, while maintaining the unique independence of Anywhere’s famed brands such as Better Homes and Gardens® Real Estate, Century 21®, and Sotheby’s International Realty®. By combining their strengths, the companies aim to leverage a global network of approximately 340,000 real estate professionals, facilitating seamless transactions for home buyers and sellers in about 120 countries.
Robert Reffkin, CEO & Founder of Compass, expresses enthusiasm for the partnership, particularly for the potential to empower more real estate professionals with technology and enhance customer service. Anywhere’s CEO & President Ryan Schneider highlights the opportunity to create a superior experience for both home buyers and sellers by merging the talent and resources of both companies.
The merger is poised to diversify Compass’ revenue streams by integrating Anywhere’s franchise, title, escrow, and relocation operations, anticipating additional revenues exceeding $1 billion. Moreover, the transaction is expected to yield $225+ million in operational synergies, thereby improving free cash flow and fostering a robust financial standing for the combined entity.
On execution of the merger, Compass shareholders will retain a majority interest in the new company with approximately 78% ownership, while Anywhere shareholders will own about 22%.
Set to close in the latter part of 2026, the transaction has received unanimous approval from both companies’ Boards of Directors. Completion remains contingent on shareholder approval and satisfactory regulatory permissions.
Compass is committed to reducing leverage with financing secured from Morgan Stanley, aiming for a net leverage of ~1.5x Adjusted EBITDA by 2028. This strategic merger not only heralds a new era for both companies but also reinvigorates the landscape of the real estate market, propelling it towards a future characterized by enhanced technology-driven services and broader global service capabilities.