Compass To Become World’s Largest Real Estate Brokerage in $1.6 Billion Merger

Brokerage giant Compass is set to become the largest residential real estate firm in the world after announcing a deal to acquire major rival Anywhere for $1.6 billion.

Compass, which also operates Christie’s, announced the acquisition on Monday, which will see it take control of Anywhere's subsidiary brands, including Century 21, Sotheby’s, and Coldwell Banker.

The all-stock deal values the combined companies at roughly $10 billion and will create what is by far the largest residential real estate brokerage in the world.

Compass says the merger will expand its 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, and Anywhere was the second largest.

"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," said Compass CEO Robert Reffkin in a statement.

The megamerger comes amid pronounced weakness in the U.S. real estate market, where sales have hovered at three-decade lows for several years as affordability concerns price many buyers out of the market.

However, Compass has appeared to thrive in the lackluster market, with the company reporting a 21% year-over-year increase in transactions for the second quarter, despite a slight decline in overall market transactions. The company's second-quarter revenue was $2.06 billion, up 21% from a year earlier.

The merger with Anywhere could provide Compass with powerful new economies of scale, underlining the advantages megabrokerages hold against small mom-and-pop outfits in a market where transactions are scarce and competition for clients is fierce.

Compass expects to cut combined operating costs by about $255 million annually following the merger by combining key operations and eliminating redundancies.

Compass says the deal will also diversify its revenue by adding over $1 billion in sales from Anywhere's established franchise, title and escrow, and relocation operations.

The company expects to complete 1.2 million home sales annually after the merger, offering ample opportunities to incorporate those additional services in transactions.

The deal is expected to close in the second half of 2026, pending approval from shareholders and regulators. Compass CEO Reffkin will lead the combined company.

Shares of Compass dropped more than 12% following the announcement, while stock in Anywhere surged more than 50%.