Realogy acquires ZipRealty for $166 million
Realogy Holdings, the owner of brands like Coldwell Banker, Century 21, ERA and Sotheby’s International has acquired New Jersey based publicly-traded ZipRealty for $6.75 per share in an all-cash deal valued at $166 million.
“The acquisition of ZipRealty represents a strategic investment in the growth of our business and a compelling opportunity to further enhance shareholder value,” said Realogy CEO Richard A. Smith in a statement. “This transaction has two uniquely attractive facets for Realogy. First, we are acquiring an established, highly productive, technology-based national residential brokerage operation. Second, we will capitalize on the innovative technology platform that ZipRealty has honed over more than a decade of development.”
ZipRealty’s shares were trading at $3 per share prior to the acquisition announcement. ZipRealty runs a real estate brokerage model, which is similar to Redfin. Redfin has plans to go public sometime in the near future.
ZipRealty has 1,800 independent sales associates that closed $2.7 billion in closed sales volume last year. The sales associates were responsible for $76 million of ZipRealty’s revenue and $32 million of gross profit in 2013, according to GeekWire. Redfin is expected to hit revenues of between $50 million and $100 million.