Compass Inc. announced on December 2, 2024, that it will join forces with Christie's International Real Estate and @properties to accelerate domestic and international growth opportunities. This strategic move integrates Christie's International Real Estate's global network of over 100 affiliates across nearly 50 countries and territories.
@properties, ranked as the 8th largest residential brokerage in the United States by sales volume, brings significant operations in key markets including Greater Chicago, Indiana, Michigan, Wisconsin, and Metro Atlanta. The acquisition also includes best-in-class title and mortgage businesses, Proper Title and Proper Rate, along with a lead-generation business, Suburban Jungle, aligning with Compass's strategy to add high-margin services.
The total consideration for the transaction is $444 million, comprising $150 million in cash and $294 million in Compass common stock. The equity value includes a 2-way purchase price adjustment, or 'collar,' of $50 million based on the equity value on the first anniversary of the closing date.
The acquisition is expected to be accretive on an Adjusted EBITDA per share basis in year one, with an expected Year 1 Pre-synergy Adjusted EBITDA of $49 million. Compass anticipates realizing approximately $30 million in cost synergies over three years, with a fully synergized Adjusted EBITDA multiple of approximately 5-6x. The transaction is subject to customary closing conditions and regulatory approvals, with an expected close in 2025.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.