The newly named Real REMAX Group announced on Aug. 24 the successful completion of the previously announced business combination between The Real Brokerage Inc. (Real) and RE/MAX Holdings, Inc. (RE/MAX Holdings). The companies said in filings with the U.S. Securities and Exchange Commission that all customary closing conditions had been met.
Real’s common shares and RE/MAX Holdings’ class A Common Stock ceased trading on the Nasdaq Global Select Market and the New York Stock Exchange, respectively, upon close of trading. Beginning Aug. 25, shares of Real REMAX Group’s common stock will start trading on the Nasdaq under the symbol REAX.
“This acquisition marks a significant milestone on our journey to build a technology platform that empowers real estate professionals and improves the consumer experience,” said Tamir Poleg, chairman and CEO of Real REMAX Group. “Bringing together Real’s technology and operating model with REMAX’s global reach and franchise model is a transformational moment for the industry. Together, we are creating a more innovative, more productive and more connected real estate ecosystem that we believe will generate substantial long-term value for agents, franchisees, consumers and shareholders.”
Shareholders of both companies approved Real’s proposed acquisition of RE/MAX at their respective special meetings last week, approving the previously announced arrangement with approximately 99.0% of the votes cast by Real shareholders, and 98.9% of the votes cast by Real shareholders, optionholders and restricted share unit holders, voting together as a single class. Holders of approximately 78.8% of the voting power of RE/MAX Holdings common stock voted to approve the acquisition.
Under the terms of the Arrangement Agreement and Plan of Merger, former Real shareholders received, following a 10 for 1 share consolidation, one share of common stock in Real REMAX Group for each Real common share owned and former RE/MAX Holdings stockholders received, based on elections made by such stockholders which were subject to the proration mechanics described in the Merger Agreement, either 0.515 shares of common stock of Real REMAX Group or approximately $4.33 in cash and approximately 0.3535 shares of common stock of Real REMAX Group for each share of RE/MAX Holdings’ Class A Common Stock owned. Also announced was a share repurchase program of up to $450 million, or 25 million shares.
The newly created Real REMAX Group aims to be a high-tech, global real estate platform with over 180,000 agents worldwide, the companies announced.
Poleg explained to all employees in a letter that getting bigger and stronger was what drove the decision to move forward with the deal.
“The thesis of this transaction is growth,” he wrote. “We want to continue Real’s momentum, while returning REMAX to agent-count and revenue growth, and giving broker/owners better tools to grow their teams and make their offices more competitive. I want to take uncertainty off the table. For Real, the brand, model, platform, commission structure, revenue share, and equity programs remain in place.
“This is the beginning of a new era for both companies,” he continued. “Real and REMAX agents are among the most trusted professionals in real estate, and we are committed to building a platform that helps all agents and brokers succeed for the next 50 years and beyond. But we won’t get there through decisions made at the top. We will get there by listening to each other, challenging each other and being willing to compromise – while never losing sight of our north star: constantly finding ways to make agents’ lives better.”
Poleg will lead the combined firm as CEO, with Jenna Rozenblat the now combined company’s first president.
Rozenblat has led the integration efforts between the two companies, having joined Real in early 2023. She previously headed up real estate operations for Orchard, a startup that focused on bridging the gap between selling and buying.
Additional executive departures were also announced last week, with REMAX President and Chief Growth Officer Chris Lim departing the company after less than two years. Travis Saxton’s departure from the role of REMAX executive vice president of Strategy was also cited in multiple media reports, but hasn’t been directly confirmed by RISMedia, while Rozenblat’s promotion was cited by multiple reports from Real agents and leaders on social media.
REMAX CEO Erik Carlson also announced his plans internally to step down and transition to the Real REMAX Board upon the acquisition closing.
REMAX and Real will continue business independently, with Poleg stressing to agents that REMAX will retain its brand and franchise model while Real keeps its brokerage model, platform and agent economics.
