Real Brokerage is acquiring Re/Max Holdings in a deal valued at €12 ($13.80) a share, in the latest example of consolidation in the US real estate brokerage industry.
The deal will create a brokerage with 180,000 real estate agents, including more than 100,000 in the US and Canada, according to a statement Monday. It will combine upstart Real, founded in 2014 as a technology-powered brokerage, with one of the real estate brokerage industry’s traditional stalwarts.
A day in the life of a Re/max real estate agent in Luxembourg
The transaction follows a string of recent acquisitions by Compass, as slow home sales, advances in artificial intelligence and changing industry rules are spurring acquisitions.
The deal, valued at €750 million ($880 million), is expected to close in the second half of the year. Morgan Stanley and Apollo Global Management Inc. arranged a €469 million commitment to refinance Re/Max’s existing debt and fund the cash portion of the transaction.
Re/Max shareholders can choose between shares in the combined company or cash, according to the statement, with Real shareholders expected to own roughly 59% of the combined company.
