Compass Inc. (NYSE:COMP) shares fell more than 12% while Anywhere Real Estate Inc. (NYSE:HOUS) jumped over 52% on Monday after the companies announced a $10 billion all-stock merger, including debt.
The deal brings together Compass’ technology investments, marketing platform, and agent network with Anywhere’s well-known brands, complementary businesses, and international footprint.
The merger aims to create a leading real estate platform, enhancing support for agents, franchisees, home sellers, and buyers.
Also Read: Compass Analysts Lower Their Forecasts After Weaker-Than-Expected Results
The merger will unite about 340,000 real estate professionals across 120 countries, creating a premier residential platform with a significantly expanded international reach and broader range of client solutions.
Under the deal, each Anywhere share will be exchanged for 1.436 Compass Class A shares, valuing Anywhere stock at $13.01 based on Compass’ 30-day average price as of Sept. 19, 2025.
The transaction is expected to close in the second half of 2026. Compass shareholders will hold about 78% of the combined company, with Anywhere investors owning roughly 22% after closing.
Compass has secured a $750 million financing commitment from Morgan Stanley Senior Funding. It plans to cut debt after the merger, targeting net leverage of about 1.5 times adjusted EBITDA by the end of 2028.
Compass had cash and cash equivalents of $177.3 million as of June 30, 2025.
The deal diversifies Compass’ revenue with over $1 billion from Anywhere’s franchise, title, escrow, and relocation units, while the combined 1.2 million transactions offer scope for additional services.
Compass expects more than $225 million in cost synergies, improved cash flow, and a stronger balance sheet, while continuing to invest in technology to support agents and clients better.
Compass CEO & Founder Robert Reffkin said, “Today marks a monumental step towards our mission to empower real estate professionals with everything they need to grow their business and better serve their clients”.
“We are excited to unite our renowned brands, international footprint, and leading businesses to build a better real estate experience in concert with Compass,” said Anywhere CEO & President Ryan Schneider.
Price Action: COMP shares were trading lower by 13.30% to $8.150, while HOUS shares were trading higher by 49.43% to $10.57 at last check Monday.
Read Next:
Photo via Shutterstock
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
Source link
