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The basics:

• Anywhere, Compass sign all-stock merger; combined enterprise value about $10B (including assumed debt)
• Transaction value reported at $4.2B; deal unanimously approved by both boards
  
• Combined platform will include ~340,000 real estate professionals across 120 countries/territories
  
• Compass CEO Robert Reffkin to lead the merged company; deal expected to close in H2 2026

Madison-based Anywhere Real Estate and Compass Inc. announced plans Sept. 22 to combine in an all-stock transaction.

In detailing the definitive merger agreement, the partners said they expect the resulting company to have an enterprise value of approximately $10 billion, including debt assumption. Reuters reported the deal itself is valued at $4.2 billion.

The transaction marries the leading brands, complementary businesses and global reach of Anywhere with Compass’ investments in technology, innovative marketing and real estate professionals. The result: a massive, premier real estate platform that helps agents and franchisees best serve home sellers and buyers, the companies said.

Upon closing, Compass CEO and founder Robert Reffkin will lead the combined company. The future role of Anywhere President and CEO Ryan Schneider was not immediately clear.

The companies did not immediately return a request for comment.

According to this week’s announcement, the combined residential real estate platform will boast approximately 340,000 real estate professionals. Operating within a worldwide network, the group will serve about 120 counties and territories. The combination will help bring Compass’ client solutions and technology to more home sellers, home buyers and industry professionals, the partners said.

It comes amid a historical slowdown in home buying amid economic uncertainty, higher mortgage rates and major industry changes.

Empowering professionals

Reffkin called the move a “monumental step” toward empowering real estate professionals to grow their business and serve clients.

“I have deep respect for Anywhere’s leadership, agents, employees, culture, and brands. By bringing together two of the best companies in our industry, while preserving the unique independence of Anywhere’s leading brands, we now have the resources to build a place where real estate professionals can thrive for decades to come,” Reffkin said.

The transaction is expected to add more than $1 billion in revenue from Anywhere. Meanwhile, the parties anticipate the combined operations – and resulting approximately 1.2 million transactions – will offer an opportunity to incorporate additional services and facilitate the buying or selling process for customers.

“We are excited to unite our renowned brands, international footprint, and leading businesses to build a better real estate experience in concert with Compass,” commented Schneider. “We have a unique opportunity to utilize the incredible breadth of talent across our companies … to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience.”

Brands you know

The former Realogy rebranded to Anywhere in 2022. Its services include brokerage via Anywhere Advisors, relocation from Cartus, title and settlements with Anywhere Integrated Services and Upward Title & Closing, leads through Leads Group and personal lines of insurance. Its franchise brands include Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA and Sotheby’s International Realty.

Those banners represent approximately 18,000 offices and more than 300,000 independent sales associates across 119 counties and territories. The figure also includes nearly 600 company owned-and-operated offices.

According to the company, operating with an integrated business model offers cross-selling opportunities on the internal side, while also providing customers a single resource for their real estate needs.

Highlighting 2019 figures, Anywhere estimates it holds about 15.3% market share in terms of transaction dollar amount and approximately 13% market share of transactions for all existing U.S. home sales with a broker involved.

Closing

The boards of directors of both parties have unanimously approved the transaction. The partners expect the deal to close in the second half of 2026, subject to customary closing conditions.

Compass has obtained a $750 million financing commitment from Morgan Stanley Senior Funding Inc. After the closing, Compass said it expects to prioritize deleveraging. The company will aim to reach net leverage of about one-and-a-half times adjusted EBITDA by year-end 2028.

Reffkin and TPG Angelo Gordon entered into customary voting agreements, according to the announcement. Each agreed to vote their shares of Compass common stock and Anywhere common stock, respectively, in support of the transaction.

Morgan Stanley & Co. LLC serves as exclusive financial advisor and Kirkland & Ellis LLP as legal advisor to Compass. Goldman Sachs & Co. LLC serves as the exclusive financial advisor and Wachtell, Lipton, Rosen & Katz counseled Anywhere.