According to Bloomberg, Compass Inc. has reached a milestone agreement to acquire Christie’s International Real Estate and other businesses in a transaction valued at $444 million. This strategic acquisition aims to bolster Compass’s international presence.
The deal will be financed through $150 million in cash and $294 million in Compass stock. In addition to Christie’s International Real Estate, the acquisition includes brokerage owner @properties, positioning Compass to expand into the global market more effectively.
The Christie’s International Real Estate brand, which already has over 30 affiliates in the U.S. and 70 international locations, including Dubai and Hong Kong, will serve as the face of Compass’s new franchise operations. This move aligns with Compass CEO Robert Reffkin’s plans to grow the company’s footprint without the need for opening new brokerage offices. “We are entering the international market in a capital-light manner that doesn’t have the same capital intensity of opening our own brokerage office,” Reffkin said during an investor call Monday.
Founded by Robert Reffkin and Ori Allon in 2012, Compass has consistently sought innovative pathways for growth, even in a challenging housing market characterized by high interest rates and prices. The acquisition of Christie’s International Real Estate represents a significant expansion opportunity and follows other notable acquisitions this year. In May, Compass acquired Parks Real Estate in Tennessee and later added Latter & Blum, a New Orleans-based firm, to its portfolio.
As part of the transaction, Compass will acquire the title and mortgage businesses Proper Title and Proper Rate, with the deal expected to close in the first quarter.
Compass shares responded positively to the news, climbing nearly 2% to $7.28 in premarket trading on Tuesday.
As Compass continues to strengthen its presence both domestically and internationally, this acquisition marks a pivotal moment in its evolution, paving the way for new growth opportunities in a transforming real estate market.
_ _ _ _
Source: bloomberg.com
