Fathom Holdings Inc. recently reported it has completed the previously announced acquisition of E4:9 Holdings, Inc., a holding company with three operating subsidiaries serving the residential real estate sector: Encompass Lending Group, Dagley Insurance Agency (DIA) and Real Results.
The final purchase price was approximately $28.88 million, consisting of approximately $9.82 million in cash and $19.05 million in Fathom Holdings common stock. E4:9’s unaudited consolidated 2020 revenue, which included only five months of DIA’s newly acquired insurance revenues, was approximately $12.8 million, and unaudited consolidated earnings were positive. Approximately 15% of that revenue was recurring through Dagley Insurance, which has 57 employees and is licensed in 47 states. Encompass Lending has 67 employees and is licensed in 20 states.
Fathom expects to expand both businesses into all 50 states as Fathom also expands its residential real estate brokerage across the country. Real Results has 12 employees and is expected to extend its lead generation business to all of Fathom’s offerings.
Collectively, E4:9 has over 130 employees with goals in place to quickly grow their base of loan officers, insurance agents and lead specialists to better support Fathom Realty’s growth. Fathom expects the acquisition to be immediately accretive.
“The addition of E4:9 is fantastic news for our company,” said Josh Harley, Fathom’s chairman and CEO, in a statement. “Our agents and associates will benefit significantly by gaining new opportunities to grow their businesses, while consumers will have a one-stop-shop for all of their housing needs. As I’ve said before, E4:9 shares Fathom’s servant leader culture, making us well matched and ready to hit the ground running.
“We are successfully building a vertically integrated, end-to-end real estate operation that brings greater value to our people, our shareholders and the communities we serve. We believe this will benefit Fathom by attracting even more agents and transactions, while increasing our revenue per transaction. As we integrate these companies into the Fathom family and our intelliAgent technology platform, we expect to enjoy a higher attach rate for mortgage, insurance and title, along with better control over the quality of our clients’ experience. As a result, we believe we can attract additional mortgage loan officers and insurance agents who are looking for greater lead flow, as well as more real estate agents who are looking for additional opportunities to grow and serve their client base.
“At this point, we’ve gathered all of the puzzle pieces we need to truly disrupt the real estate industry,” added Harley. “Our balance sheet remains strong, and we are focused on bolstering our current operations and increasing our footprint. The future is extremely bright for us as we continue to redefine the real estate industry.”
For more information, please visit www.fathomrealty.com.
