Compass and Anywhere Real Estate have announced a definitive agreement to merge in an all-stock transaction, creating one of the largest residential real estate platforms in the world. The combined company is expected to have an enterprise value of approximately $10 billion, including the assumption of debt.
This merger brings together Compass’ deep investment in technology and marketing with Anywhere’s well-established brands and global reach. Together, they aim to provide a more powerful platform for real estate professionals, homebuyers, and sellers. The new company will operate in every major U.S. city and serve over 120 countries and territories, connecting approximately 340,000 real estate professionals through a shared network.
The merger is also expected to diversify Compass’ revenue streams by adding over $1 billion from Anywhere’s franchise, title, escrow, and relocation services. With around 1.2 million combined transactions annually, the company sees an opportunity to offer more integrated services and smoother experiences for clients.
Financially, Compass anticipates more than $225 million in operating cost savings, even after accounting for potential friction and dissynergies. These efficiencies, along with a stronger balance sheet, are expected to generate significant free cash flow. Compass plans to continue investing in technology to help agents grow their businesses and improve client service.
Under the terms of the agreement, each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A common stock. Based on Compass’ recent trading average, this values Anywhere shares at $13.01 each. Following the merger, Compass shareholders will own approximately 78 percent of the combined company, while Anywhere shareholders will hold the remaining 22%.
The boards of both companies have unanimously approved the deal, which is expected to close in the second half of 2026. The transaction still requires shareholder approval and regulatory clearance. Compass CEO and Founder Robert Reffkin will lead the combined company following the completion of the merger.
To support the transition, Compass has secured a $750 million financing commitment from Morgan Stanley Senior Funding. Following the merger, Compass intends to focus on reducing its debt, aiming to achieve a net leverage ratio of approximately 1.5 times adjusted EBITDA by the end of 2028.
Advisors: Morgan Stanley is serving as exclusive financial advisor and Kirkland & Ellis is serving as legal advisor to Compass. Goldman Sachs is serving as the exclusive financial advisor and Wachtell, Lipton, Rosen & Katz is serving as the legal advisor to Anywhere.
KEY QUOTES:
“Today marks a monumental step towards our mission to empower real estate professionals with everything they need to grow their business and better serve their clients. I have deep respect for Anywhere’s leadership, agents, employees, culture, and brands. By bringing together two of the best companies in our industry, while preserving the unique independence of Anywhere’s leading brands, we now have the resources to build a place where real estate professionals can thrive for decades to come.”
Compass CEO & Founder Robert Reffkin
“We are excited to unite our renowned brands, international footprint, and leading businesses to build a better real estate experience in concert with Compass. We have a unique opportunity to utilize the incredible breadth of talent across our companies, especially our world-class agents and franchisees, to deliver even more value to home buyers and home sellers across every phase of the home buying and home selling experience.”
Anywhere CEO & President Ryan Schneider
“Technology continues to transform every industry and every profession. We are excited to partner with a company that shares our vision so that we can empower every real estate professional.”
Compass Co-Founder Ori Allon
