The deal is valued at around $444 million, with $150 million in cash and $294 million in equity. If finalized, it would merge the nation’s No. 1 brokerage by sales volume with the No. 8 largest brokerage.
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Compass is acquiring Christie’s International Real Estate and @properties in a deal worth $444 million, as announced by the companies on Monday.
If the acquisition is approved, it would combine the top brokerage in sales volume with the nation’s eighth-largest brokerage by volume.
The transaction is still pending and is expected to close next year, with the brands remaining separate “for the foreseeable future,” according to Compass representatives during an investor call on Monday.
Compass CEO Robert Reffkin stated, “This partnership will enable us to support strong independent brokerages and broker-owner entrepreneurs worldwide who are Affiliates under Christie’s International Real Estate. Our companies share the same commitment to empowering entrepreneurial agents. Together, we will offer unparalleled resources and support to help everyone succeed and deliver exceptional client experiences.”
Compass will pay $150 million in cash and $294 million in stock, equivalent to 44 million Compass shares. The deal includes a $50 million “collar” to protect shareholders based on the price of Compass stock one year after the closing.
@properties holds the largest market share in Chicago, with operations across the Midwest and Atlanta, Georgia. The company has also expanded into luxury markets such as Park City, Utah, and internationally. @properties acquired Christie’s International Real Estate in November 2021.
Reffkin mentioned that the merger would bring together the best technology for agents from both companies.
“When I look at other companies outside of Compass, I am confident that @properties has developed the best technology for agents. I am very excited to see us leverage the best of both,” said Reffkin.
He added that the acquisition would allow the company to focus on serving broker-owners, marking an evolution for Compass.
“Compass’s core values revolve around empowering entrepreneurs. Thus far, our focus has been on the agent entrepreneur,” he explained. “This expansion for the company now enables us to serve independent broker-owner entrepreneurs.”
Christie’s International Real Estate has a presence in 50 countries and territories.
Compass stated that @properties’ northern California operation will become an independent brokerage while maintaining its network affiliation.
Thad Wong and Mike Golden, the co-CEOs of @properties Christie’s International Real Estate, will continue to oversee the operations of the existing brands, according to Compass officials.
“Compass shares our vision to enhance the real estate industry through technology, marketing, and exceptional service, as well as to support the local, independent broker through the Christie’s International Real Estate and @properties brands,” said Wong.
“This partnership complements our unique brands and empowers agents to provide an even better experience for their clients,” added Golden in a statement.
The deal also involves mortgage and title companies Proper Rate and Proper Title.
Compass affirmed its plans for continued growth internationally and within the U.S. post-acquisition.
Compass has been a publicly traded company since 2021. The company disclosed in a filing with the U.S. Securities and Exchange Commission on Monday that it had entered into a merger agreement with @properties and Christie’s in November.
The merger was approved by the board of directors unanimously, and the article will be updated accordingly. For any inquiries, please contact Taylor Anderson via email.