Summary
The Real Brokerage has completed its acquisition of RE/MAX Holdings, creating Real REMAX Group Inc. The combined company is expected to begin trading on Nasdaq under the ticker REAX on Aug. 25.
The Real Brokerage completed its acquisition of RE/MAX Holdings on Monday, bringing Real’s technology-focused brokerage operation and the former RE/MAX Holdings businesses together under Real REMAX Group Inc.
The transaction closed Aug. 24 following shareholder approvals earlier this month and final court approval from the Supreme Court of British Columbia on Aug. 21.
The Aug. 24 filing with the Securities and Exchange Commission confirms that the mergers were completed and that the transaction is no longer pending.
Shares of Real REMAX Group are expected to begin trading Tuesday on Nasdaq under the ticker REAX.
The combination brings together Real’s cloud-based brokerage platform with the RE/MAX franchise network and the Motto Mortgage franchise business.
When the transaction was announced, the companies said the combined organization would include more than 180,000 real estate professionals across more than 120 countries and territories.
Real Chairman and CEO Tamir Poleg is set to serve as chairman and chief executive of Real REMAX Group.
The transaction required several corporate steps before closing. Real completed a 10-for-1 consolidation of its common shares immediately before the remaining arrangement and merger steps were completed.
Former RE/MAX shareholders received cash, stock or a combination of the two, depending on their elections and the proration provisions contained in the merger agreement.
The closing filing also confirms that Real REMAX Group entered into financing tied to the transaction. The credit agreement includes a $550 million term-loan facility and a $40 million revolving credit facility, with Morgan Stanley Senior Funding serving as administrative agent.
The financing was arranged in connection with the acquisition, including the refinancing of existing RE/MAX indebtedness and other transaction-related funding needs.
Monday’s closing follows a short but significant approval sequence. Securityholders of both companies approved the combination Aug. 14, and the Supreme Court of British Columbia issued the final order required for the arrangement portion of the transaction Aug. 21.
At that point, the acquisition had not yet closed and remained subject to satisfaction or waiver of the remaining closing conditions.
The Aug. 24 SEC filing confirms those steps have now been completed.
The combination brings together two companies that grew through different brokerage models. RE/MAX built its international presence primarily through franchising, while Real expanded through a cloud-based brokerage platform and technology infrastructure.
That difference in operating model will now become part of the integration work facing the combined organization as Real REMAX Group begins operating as a single public company.
Regular trading in Real REMAX Group shares is expected to begin Tuesday morning under REAX.
WRE News will continue following the integration of the Real and RE/MAX businesses as the combined company begins operations.
0 Comments