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ompass Inc. (NYSE:COMP) shares dropped more than 12% while Anywhere Real Estate Inc. (NYSE:HOUS) surged over 52% on Monday after the two firms announced a $10 billion all‑stock merger that includes debt. The transaction will combine Compass’s technology investments, marketing platform and agent network with Anywhere’s well‑known brands, complementary businesses and global presence. The goal is to create a premier real‑estate platform that better supports agents, franchisees, sellers and buyers.
The merger will bring together roughly 340,000 real‑estate professionals in 120 countries, expanding the international reach and breadth of client solutions. Under the terms, each Anywhere share will be exchanged for 1.436 Compass Class A shares, valuing Anywhere at $13.01 based on Compass’s 30‑day average price as of September 19, 2025. The deal is expected to close in the second half of 2026. Post‑merger, Compass shareholders will own about 78% of the combined entity, while Anywhere investors will hold roughly 22%.
Compass has secured a $750 million financing commitment from Morgan Stanley Senior Funding and plans to reduce debt, targeting net leverage of about 1.5 times adjusted EBITDA by the end of 2028. As of June 30, 2025, the company held $177.3 million in cash and equivalents. The merger diversifies Compass’s revenue, adding over $1 billion from Anywhere’s franchise, title, escrow and relocation units, and the combined 1.2 million transactions create opportunities for additional services. Compass projects more than $225 million in cost synergies, improved cash flow and a stronger balance sheet, while continuing to invest in technology to better serve agents and clients.
CEO and founder Robert Reffkin said, “Today marks a monumental step toward our mission to empower real‑estate professionals with everything they need to grow their business and better serve their clients.” Anywhere CEO and president Ryan Schneider added, “We are excited to unite our renowned brands, international footprint and leading businesses to build a better real‑estate experience in concert with Compass.”
Price action: COMP shares were down 13.30% to $8.15, while HOUS shares were up 49.43% to $10.57 at the close on Monday.
