Compass acquiring @properties & Christie’s International Real Estate in $444M deal – 12/02/2024

In a move set to redefine the global real estate landscape, Compass Inc. has announced a $444 million deal to acquire Chicago-based @properties and Christie’s International Real Estate. 
The acquisition encompasses the brokerage networks, title and mortgage businesses, and global affiliate networks of the firms. The transaction will include $150 million in cash and 44 million shares of Compass’ Class A common stock.
This monumental deal represents Compass’ largest acquisition to date, following its purchase of Tennessee-based Parks Real Estate and Louisiana-based Latter & Blum earlier this year. 
It underscores the brokerage giant’s aggressive expansion strategy, even in a challenging real estate market.
Strategic Expansion with Global Impact
Christie’s International Real Estate boasts a network of over 100 independent affiliates spanning 50 countries. 
The acquisition marks Compass’ first foray into international markets, further solidifying its position as the largest residential real estate brokerage in the U.S. by sales volume.
Compass CEO Robert Reffkin expressed excitement about the partnership, emphasizing the shared commitment to supporting independent brokers and enhancing client experiences.
 “Together, we will provide unparalleled resources to empower entrepreneurial agents and deliver exceptional service,” Reffkin said.
The partnership will maintain the autonomy of existing brands while leveraging Compass’ proprietary technology and marketing platforms. This includes integrating @properties’ pl@tform™, a comprehensive software solution for managing real estate transactions, into the broader Compass ecosystem.
@properties and Christie’s International Real Estate to Operate Independently
Founded in 2000 by Thad Wong and Mike Golden, @properties has become the eighth-largest residential brokerage in the U.S., with operations across Greater Chicago, Indiana, Michigan, Wisconsin, and Atlanta under the Ansley Real Estate brand. 
In 2021, the company acquired Christie’s International Real Estate to bolster its presence in luxury markets. Wong and Golden will remain as co-CEOs, managing day-to-day operations.
“Everything you love about @properties — our brand, culture, technology, and ties to Christie’s — will remain unchanged,” 
Golden assured agents and clients. Wong highlighted that the partnership with Compass was carefully selected from multiple options as the best fit for their growth objectives.
Christie’s International Real Estate Sereno, operating in Northern California, will become an independent brokerage while retaining its network affiliation with Christie’s.
Financial and Operational Highlights
The transaction aligns with Compass’ long-term strategy to integrate high-margin services. 
The deal includes Proper Title and Proper Rate, @properties’ title and mortgage divisions, as well as the lead-generation business Suburban Jungle. These additions aim to diversify Compass’ revenue streams and enhance agent offerings.
Compass forecasts $500 million in revenue and $49 million in adjusted EBITDA from the combined operations in the first year. 
The deal will be partially funded by Compass’ $350 million revolving credit facility, which it plans to repay promptly post-acquisition.
Since the beginning of 2024, Compass’ stock has surged from $3.54 to $7.14, reflecting investor confidence in the firm’s growth trajectory. 
The brokerage has added nearly 3,000 principal agents in the past year, primarily through acquisitions, further bolstering its market position.
A Unified Vision for Growth
This acquisition symbolizes a shared vision to redefine the real estate industry through technology, exceptional service, and empowering agents. 
By combining the strengths of Compass, @properties, and Christie’s International Real Estate, the partnership is poised to create unmatched opportunities for agents and unparalleled experiences for clients.
As Wong summarized, “This is a transformative union that respects our unique brands while amplifying our ability to serve agents and clients better than ever before.”
The transaction is expected to close next year, marking a new chapter in Compass’ journey as a global leader in real estate.

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