Realogy Holdings Corp. and SIRVA Worldwide Inc., a leading global relocation and moving service provider, announced on Thursday SIRVA will acquire Realogy’s global Cartus Relocation business for $400 million.
The deal is expected to close in the first half of 2020, subject to the receipt of required regulatory clearances and other closing conditions.
The transaction includes all of the Relocation assets of Realogy’s Cartus subsidiary but does not include the Cartus Affinity business, which delivers home selling and buying assistance to members of affinity clients, nor its Broker Network, made up of expert agents and brokers from Realogy’s residential real estate brands and certain independent real estate brokers.
Under the terms of the agreement, Realogy will receive $375 million in cash at closing, subject to certain adjustments, and a $25 million deferred payment. Realogy intends to use a substantial majority of the net proceeds from the transaction, after taxes and transaction and separation-related costs, to pay down corporate debt and use the balance to reinvest in the business.
“The sale of Cartus’s Relocation business is part of Realogy’s strategy to simplify and streamline our company as we strengthen and hone our value proposition,” said Ryan Schneider, Realogy’s chief executive officer and president. “This transaction will allow Realogy to retain and focus on growing elements of the business that are critical to our value proposition, including our Affinity and other lead generation partnership programs, which benefit from our established Broker Network. It will also allow us to use net proceeds to reduce debt, reinvest in the business, and drive greater long-term value for our shareholders.”