Compass, the largest U.S. residential real estate brokerage, announced on Monday that it will acquire Anywhere Real Estate in an all-stock deal valued at $4.2 billion, marking a major consolidation in the industry amid slowing home sales.
The transaction comes at a time when elevated interest rates continue to dampen buyer demand across the housing market. With this acquisition, Compass aims to strengthen its revenue base and expand its global presence by integrating Anywhere’s diversified portfolio of real estate services.
Deal structure and financial impact
According to both companies, the deal will add more than $1 billion in revenue to Compass’ topline through Anywhere’s franchise, relocation, title, and escrow operations. Anywhere, headquartered in Madison, New Jersey, currently works with over 30,000 affiliated agents in 119 countries, offering a broad range of real estate services.
Compass will pay $13.01 per share to Anywhere shareholders, representing an 84 percent premium to Anywhere’s last closing price. Following the announcement, Anywhere’s stock surged 55 percent in premarket trading to $10.97, while Compass’ shares dropped nearly 15 percent.
Each share of Anywhere’s common stock will be converted into 1.436 Compass class A shares, placing the equity value of the transaction at roughly $1.6 billion. Factoring in debt, the combined company is expected to have an enterprise value of about $10 billion.
Industry implications and advisory roles
The acquisition underscores the ongoing trend of consolidation in the real estate brokerage sector, as firms look for ways to offset weakening sales volumes and high operating costs. By integrating Anywhere’s global franchise network, Compass seeks to broaden its service offerings and create new revenue channels during a period of subdued housing demand.
Financial advisory roles have been assigned to leading institutions. Morgan Stanley is advising Compass, while Goldman Sachs is serving as financial adviser to Anywhere. These roles highlight the scale and complexity of the transaction, which ranks among the largest deals in the real estate brokerage industry in recent years.
The companies noted that the merger would allow Compass to leverage Anywhere’s expertise in title and settlement services, as well as relocation support, thereby diversifying its business beyond traditional brokerage revenue. This diversification is viewed as a strategic move to mitigate risk in a market influenced by interest rate fluctuations and economic uncertainty.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions. Once finalized, the combined entity is positioned to become one of the most comprehensive real estate service providers globally, with expanded market reach and operational scale.
