Bed Bath & Beyond Inc. (NYSE: BBBY) has signed an agreement to acquire Fathom Holdings Inc. (NASDAQ: FTHM), a real estate services platform.
According to the companies, the transaction implies an equity value for Fathom of approximately $53.38 million and reflects an exchange ratio of 0.2236 shares of Bed Bath & Beyond common stock for each Fathom share, subject to certain adjustments at closing of the transaction.
“Homeownership is one of the most important financial and emotional commitments people make in their lives,” said Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond. “Fathom brings important capabilities across brokerage, mortgage, title, insurance and technology that strengthen our Homeownership & Transactions pillar, and we expect will accelerate our Everything Home strategy.”
Fathom has also announced that Adam Rothstein, a current member of its board of directors, has been appointed interim CEO and that Daniel Weinmann, the company’s vice president of finance, has been appointed chief financial officer, effective immediately. It is unclear which Fathom executives will continue to work when the company is absorbed into Bed Bath & Beyond.
“This transaction marks a transformational opportunity for Fathom and our shareholders,” said Rothstein. “By combining with Bed Bath & Beyond, we meaningfully expand our ability to deliver a fully integrated, technology-driven experience for agents and consumers, and it positions us for long-term growth. Bed Bath & Beyond’s broad customer reach and strong brand recognition, paired with our scalable real estate technology platform, creates a compelling opportunity to redefine the homeownership lifecycle and build lasting value for our shareholders.”
Photo by Mike Mozart / Flickr Creative Commons
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