BTIG notes that Compass (COMP) disclosed plans to acquire Anywhere Real Estate (HOUS) in an all-stock deal expected to close in the second half of the year. The firm points out that the company will issue 175M shares, putting EV for Anywhere at $4.2B or about 10x consensus 2026 EBITDA. The deal will create an industry leader with 320K agents, 15% share of national sides and pro forma 2025 revenue of $12.8B. Anywhere is debt-heavy and BTIG gets to PF net debt-to-EBITDA of 4.4x but has that working down to about 1.5x by 2028. The firm sees three justifications for the deal, namely real estate is a volume game, and the transaction creates a clear leader, it unlocks significant cost-related synergy at an estimated $225M or about 8% of the combined pro forma OpEx base and diversifies revenue. BTIG has a Buy rating on Compass with a price target of $11 on the shares.
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