Compass, Anywhere Real Estate to merge in all-stock deal

Compass (NYSE:COMP [https://seekingalpha.com/symbol/COMP]) and Anywhere Real Estate (NYSE:HOUS [https://seekingalpha.com/symbol/HOUS]) have signed a definitive merger agreement to combine in an all-stock transaction. The combined company is expected to have an enterprise value of around $10 billion, including the assumption of debt.

Shares of Compass (NYSE:COMP [https://seekingalpha.com/symbol/COMP]) fell 5.2%, while Anywhere Real Estate (NYSE:HOUS [https://seekingalpha.com/symbol/HOUS]) jumped 56% premarket following the announcement.

Pursuant to the deal, each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A common stock. The transaction is expected to close in the second half of 2026, following which current Compass shareholders will own around 78% of the combined company on a fully diluted basis, while Anywhere shareholders will own approximately 22%.

The deal is expected to diversify Compass by adding over $1 billion in revenue from Anywhere's established franchise, title and escrow, and relocation operations. The approximately 1.2 million transactions on a combined basis provide an opportunity to incorporate additional services and create more seamless transactions for home buyers and home sellers.

In addition, Compass expects to achieve $225+ million in non-GAAP OPEX synergies, net of dissynergies and friction costs. These efficiencies, together with the improved cost and debt profile of the combined company, are expected to drive significant free cash flow and a stronger combined balance sheet.

Source: Press Release [https://seekingalpha.com/pr/20239249-compass-announces-combination-with-anywhere-real-estate-in-all-stock-transaction]

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