The potential Fathom and Bed Bath & Beyond parent merger is no more.
After Bed Bath & Beyond, now under the corporate name Neighborhood Intelligence, first agreed to acquire real estate brokerage Fathom Holdings last June, the companies, in an Oct. 5 press release, said the deal would not be consummated due to current valuations of both not reflecting the fair value of either. The companies believe the timing is not right to combine their businesses, and have mutually agreed to terminate the merger agreement.
“We entered into the merger transaction because we believed that combining Fathom’s national real estate and title businesses with Neighborhood Intelligence’s technology, data and other assets had the potential to create long-term value,” said Scott Flanders, Fathom’s chairman of the board. “At current valuations, however, we do not believe a merger appropriately reflects the fair value of either company. Fathom has made meaningful progress, and we look forward to exploring data sharing and other areas of collaboration while each company pursues its own strategy.”
Although a merger is not the appropriate structure at this time, the companies said they intend to continue exploring ways to work together where collaboration can create value. Areas under consideration include data sharing and the use of each company’s complementary businesses, technology, relationships and other assets, subject to appropriate agreements and applicable requirements. The companies expect to remain independent and focused on their respective operating priorities, the release stated.
“Our responsibility is to continually evaluate the best path to maximize long-term value for our shareholders,” said Marcus Lemonis, chairman and CEO of Neighborhood Intelligence. “After listening to shareholders and reviewing the alternatives, we believe retaining ownership and control of our blockchain assets is the appropriate path.
“We are encouraged by the potential of these assets and believe retaining them gives our shareholders the best opportunity to participate in their future value. Separately, we and Fathom have determined that a merger at current valuations would not appropriately reflect the fair value of either company. We remain supportive of Fathom’s progress and look forward to working together, including exploring opportunities around data sharing.”
