The Real Brokerage Inc. (NASDAQ: REAX) announced it will acquire RE/MAX Holdings Inc. (NYSE: RMAX), the parent company of RE/MAX LLC, for approximately $880 million.
Following the close of the transaction, Real CEO Tamir Poleg will serve as chairman and CEO of the new Real REMAX Group. Real’s Chief Operating Officer Jenna Rozenblat will serve as chief integration officer in connection with the transaction. The combined company’s 10-member board will include three members from the RE/MAX Holdings board.
Real is based in Miami and RE/MAX Holdings is headquartered in Denver. Going forward, the new Real REMAX Group will be headquartered in Miami with significant operations remaining in the Denver area. Its stock is expected to trade on NASDAQ under the ticker REAX.
The combined company will encompass more than 100,000 real estate professionals based in the US and Canada. RE/MAX Holdings’ REMAX and Motto Mortgage will continue to operate under their current brands while Real will continue to operate as an owned brokerage under the Real brand.
The transaction is expected to close in the second half of this year and is not subject to financing. Real has secured a $550 million financing commitment arranged by Morgan Stanley Senior Funding Inc. and Apollo Global Funding, LLC as joint lead arrangers and bookrunners to refinance RE/MAX Holdings’ existing debt and to fund the cash portion of the transaction consideration and transaction costs.
“This acquisition is an important step on our journey to build a technology platform that empowers real estate professionals and improves the consumer experience,” said Poleg. “Bringing together Real’s technology and operating model with REMAX’s global reach and franchise model is a transformational moment for the industry. Together, we will create a more innovative, more productive and more connected real estate ecosystem that we believe will generate substantial long-term value for agents, franchisees, consumers and shareholders.”
“REMAX is pleased to announce this transaction with Real to create a leading global real estate platform,” said Erik Carlson, CEO of RE/MAX Holdings. “Real brings differentiated, best-in-class technology that we believe will drive greater choice, higher productivity and expanded support to our network. By joining forces, we will be positioned to deliver a more enhanced experience for all stakeholders – from agents to franchisees to consumers to shareholders – all while strengthening the culture and flexibility that make our brands special.”
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