The deal is valued at around $444 million, with $150 million in cash and $294 million in equity. If finalized, it would merge the nation’s No. 1 brokerage by sales volume with the No. 8 largest brokerage.
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Compass is buying Christie’s International Real Estate and @properties at a deal valued at $444 million, the companies said in a statement on Monday.
If approved, the acquisition would merge the No. 1 brokerage by sales volume with the nation’s No. 8 brokerage by volume.
The sale is pending and wouldn’t close until next year, the companies said. The brands would remain separate “for the foreseeable future,” Compass representatives said during a call with investors on Monday.
“This partnership will allow us to empower strong independent brokerages and broker-owner entrepreneurs around the world who are Affiliates under Christie’s International Real Estate,” Compass CEO Robert Reffkin said in a statement. “Our companies share the same passion for empowering entrepreneurial agents. Together, we will be able to provide unparalleled resources and support to help everyone succeed and deliver exceptional client experiences.”
Compass said that it would pay $150 million in cash plus $294 million in stock, or 44 million Compass shares. The deal includes a $50 million “collar” to protect shareholders depending on the price of Compass stock a year after the closing.
@properties has the largest market share in Chicago, along with operations throughout the Midwest and Atlanta, Georgia. The company has also begun expanding its reach in luxury markets like Park City, Utah, and internationally. @properties bought Christie’s International Real Estate in November 2021.
Reffkin said on Monday that the merger would pair up the companies with the best technology for agents.
“I am certain that @properties is the company that has built the best technology for agents when I look at other companies outside of Compass,” Reffkin said. “I am very, very excited to see us be able to leverage the best of both.”
He said that the acquisition would allow the company to focus on serving broker-owners, which he said was an evolution for Compass.
“Everything Compass stands for is empowering entrepreneurs. To date our focus has been on the agent entrepreneur,” he said. “What this expands for the company is now being able to serve independent broker-owner entrepreneurs.”
Christie’s International Real Estate includes a focus across 50 countries and territories.
Compass said that @properties’ northern California operation would become an independent brokerage “while maintaining its network affiliation.”
Thad Wong and Mike Golden, the co-CEOs of @properties Christie’s International Real Estate, will stay on running operations of the existing brands, Compass officials said.
“Compass shares our commitment to enhance the real estate industry through technology, marketing, and exceptional service and to embrace the local, independent broker through the Christie’s International Real Estate and @properties brands,” Wong said.
“This is a very complementary union that respects our unique brands and empowers agents to provide an even better experience for the clients they serve,” Golden added in a statement.
The deal also included mortgage and title companies Proper Rate and Proper Title.
Compass said it would continue growing internationally and within the U.S. after the sale.
Compass has been a publicly traded company since 2021. The company said in a filing with the U.S. Securities and Exchange Commission on Monday that it entered into a merger agreement with @properties and Christie’s on Nov. 25 and that its board of directors had unanimously approved the merger.
This post will be updated.