Compass, Inc. (NYSE: COMP) and Anywhere Real Estate Inc. (NYSE: HOUS) have announced a definitive merger agreement to combine in an all-stock transaction. The combined company is expected to have an enterprise value of approximately $10 billion, including the assumption of debt.
The transaction is expected to bring together approximately 340,000 real estate professionals globally onto a shared network, operating in every major U.S. city and serving approximately 120 countries and territories. It will broaden the international referral network and significantly expand Compass’ innovative client solutions and technology to more home sellers, home buyers, and real estate professionals.
Upon completion of the transaction, current Compass shareholders will own approximately 78% of the combined company on a fully diluted basis, while Anywhere shareholders will own approximately 22%.
The transaction is expected to diversify Compass by adding over $1 billion in revenue from Anywhere’s established franchise, title and escrow, and relocation operations. Additionally, 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.
Compass anticipates achieving $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.
Compass has obtained a $750 million financing commitment from Morgan Stanley Senior Funding, Inc. post-close. The company expects to prioritize deleveraging with the goal to reach net leverage of ~1.5x adjusted EBITDA by year-end 2028.
The transaction has been unanimously approved by the boards of directors of both Compass and Anywhere and is expected to close in the second half of 2026, subject to approval by both Compass and Anywhere shareholders, and satisfaction of customary closing conditions, including receipt of regulatory approvals.
These figures provide clear insights into the financial and operational impact of the merger, offering a comprehensive understanding of the transaction's implications. As a result of these announcements, the company's shares have moved -3.94% on the market, and are now trading at a price of $7.07. For more information, read the company's full 8-K submission here.
