The all-stock deal, announced Monday, will see Compass take control of Anywhere’s subsidiary brands, including Century 21, Sotheby’s, and Coldwell Banker.
The merger values the combined companies at approximately $10 billion and will create the largest residential real estate brokerage in the world, as reported by Inman.
Compass CEO Robert Reffkin said the merger was a strategic move.
“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,” he said.
The merger will expand Compass’s reach into every major U.S. city and 120 countries, with a combined workforce of 340,000 real estate professionals globally.
Compass was already the largest U.S. brokerage by sales volume, with Anywhere ranking second.
This megamerger comes amid significant weakness in the U.S. real estate market, where sales have remained at three-decade lows for several years due to affordability concerns pricing many buyers out of the market.
Despite these challenging market conditions, Compass has shown strong performance, reporting a 21 per cent year-over-year increase in transactions for the second quarter, even as overall market transactions declined slightly.
The company’s second-quarter revenue reached $2.06 billion, up 21 per cent from the previous year.
The acquisition is expected to provide Compass with powerful economies of scale, highlighting the advantages that large brokerages hold over smaller operations in a market where transactions are scarce and competition for clients is intense.
Following the merger, Compass anticipates cutting combined operating costs by approximately $255 million annually by combining key operations and eliminating redundancies.
The deal will also diversify Compass’s revenue by adding over $1 billion in sales from Anywhere’s established franchise, title and escrow, and relocation operations.
The combined entity is projected to complete 1.2 million home sales annually, providing numerous opportunities to incorporate additional services into transactions.
The market reaction to the announcement was mixed, with Compass shares dropping more than 12 per cent while Anywhere stock surged over 50 per cent.
The deal is expected to close in the second half of 2026, pending approval from shareholders and regulatory authorities. Reffkin will lead the combined company.
Industry analysts note that consolidation has been a growing trend in real estate as companies seek to weather market volatility.
