In another earth-shattering move likely to further tip the balance of power in residential real estate, Compass has announced it is acquiring Anywhere Real Estate in a deal expected to value the combined companies at over $10 billion, and allow the New York-based brokerage to pursue what has clearly become a campaign to transform the industry.
“Today marks a monumental step towards our mission to empower real estate professionals with everything they need to grow their business and better serve their clients,” said Compass CEO & Founder Robert Reffkin in a statement.
The deal values Anywhere at $1.6 billion, according to Compass CEO Scott Wahlers.
In a conference call following the announcement, Reffkin characterized the move as being about creating more efficiencies for agents and consumers, “delivered digitally and cemented by trust.”
“This accelerates our ability to deliver what homesellers and homebuyers need,” Reffkin said, “all guided by their trusted real estate advisor.”
But it also comes as Compass has pushed hard to influence foundational real estate practices, most notably around private listing networks. The company is currently engaged in multiple lawsuits over its ability to hold listings on its exclusive private listing network, with one of those targeting portal behemoth Zillow.
Compass has also already demonstrated it is willing to use mergers and acquisitions to expand its practices, with @properties—a brokerage it acquired late last year—adopting so-called “delayed marketing” and private listing services, according to brokers who spoke with RISMedia.
The company was also reportedly on the verge of acquiring Berkshire Hathaway HomeServices, though Berkshire denied this.
“We have a unique opportunity to utilize the incredible breadth of talent across our companies,” said Ryan Schneider, CEO & President of Anywhere, in a statement, “especially our world-class agents and franchisees, to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience.”
Compass and Anywhere are the two largest brokerages in the country, according to the RISMedia 2025 Power Broker Report, accounting in total for over 475,000 transactions and $414 billion in sales volume.
Reffkin and Wahlers did not take questions in the conference call following the announcement. Executives did take investor questions after the @properties deal was announced.
Wahlers also claimed the deal would create efficiencies for both companies, and help Compass diversify geographically as well as through Anywhere’s franchise business.
He added that the company expects $225 million in cost saving synergies in the first three years of the merger, through office footprint reduction and vendor consolidation. Compass will also seek to “de-leverage” the balance sheet of the combined company, with Wahlers noting the combined company will initially carry about $2.6 billion in debt.
The question of private listings was not addressed in the release or the call. Anywhere executives have previously toed the line on the topic, but also recently teased expanded features “that let our brokerages do…private listings if they want…and be totally compliant with industry parameters.”
“As more of the country’s best real estate professionals and broker owners choose to run their business on the Compass platform and more home sellers and home buyers choose to work with our professionals, it creates more value for everyone,” Reffkin said on the call. “It creates more value for everyone, more users, listings, transactions, market and data insights makes our platform and the agents using it more valuable.”
