Compass, the New York-based residential brokerage known for its sleek technology platform, announced on Monday that it will merge with Anywhere Real Estate, the parent company of Coldwell Banker, Corcoran, Century 21, and Sotheby’s International Realty. This all-stock deal values the combined firm at about $10 billion.
Both boards unanimously approved the deal, which is expected to close in the second half of 2026, pending shareholder and regulatory approvals. When completed, it will unite two of the industry’s most recognizable companies into a single platform that covers nearly every corner of the residential real estate market.
A Massive Network of Agents
Together, Compass and Anywhere will bring nearly 340,000 agents under one umbrella. This will include a presence in every major U.S. city and over 120 countries and territories. Executives believe this reach could give the combined company an advantage in referrals, technology, and services. They see this as important as the housing market deals with economic pressures and changing consumer expectations.
“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,” said Robert Reffkin, Compass’s chief executive and founder. He will lead the merged company. He emphasized that Anywhere’s well-known brands will remain independent while gaining from Compass’s data-driven tools and marketing systems.
Ryan Schneider, president and chief executive of Anywhere, called the merger “a unique opportunity to use the incredible talent across our companies, especially our world-class agents and franchisees, to deliver even more value to home buyers and sellers.”
Expanding Revenue and Reach
The merger also aims to expand Compass’s revenue sources. Anywhere’s franchise, title, escrow, and relocation divisions generate more than $1 billion each year. Combined, the companies manage about 1.2 million transactions annually.
Executives expect the deal could result in over $225 million in cost savings, along with stronger free cash flow. Compass has also secured a $750 million financing commitment from Morgan Stanley to support the transaction and plans to reduce debt in the years after the merger.
The Broader Landscape
The announcement comes as the real estate industry faces changes, grappling with high mortgage rates, slowing sales, and rising competition from digital platforms. Compass, founded in 2012, quickly grew by branding itself as a technology company as well as a brokerage, raising billions in venture capital before going public in 2021. Anywhere has built its strength through scale and the longevity of its brands.
By merging, the companies hope to navigate market challenges while investing in technology that helps agents and buyers manage the increasingly complex homebuying process.
Terms of the Deal
Under the agreement, each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A stock. This values the shares at $13.01 each based on Compass’s 30-day average price as of Sept. 19. Compass shareholders will own about 78 percent of the combined company, while Anywhere shareholders will hold the remaining 22 percent.
The companies stated that talks about the transaction had been ongoing for months, with both Morgan Stanley and Goldman Sachs acting as financial advisers. Legal support was provided by Kirkland & Ellis for Compass and Wachtell, Lipton, Rosen & Katz for Anywhere.
If approved, the merger will mark one of the largest consolidations in the history of the U.S. residential real estate market, creating a company that competes with some of the biggest players worldwide.
