Compass to Buy Christie’s International for $444M

According to Bloomberg, Compass Inc. (COMP), a major US real estate brokerage, announced plans to acquire Christie’s International Real Estate in a deal valued at $444M. 

The acquisition, which includes brokerage properties as well as title and mortgage businesses Proper Title and Proper Rate, is a strategic shift for Compass as it navigates a sluggish housing market.

Strengthening Position

Compass CEO Robert Reffkin highlighted that the blockbuster deal aligns with the company’s strategy to enter the international market “in a capital-light manner” by leveraging franchising rather than directly opening offices abroad. 

Notably, Christie’s already boasts a network of over 30 domestic and 70 international affiliates in cities like Dubai and Hong Kong.

Founded in 2012, Compass has grown rapidly. It went public in 2021 and acquired several regional brokerages to solidify its presence in the US. This year alone, Compass added Tennessee-based Parks Real Estate and New Orleans-based Latter & Blum to its portfolio.

Navigating Uncertainty

The US brokerage industry has faced mounting challenges, including high mortgage rates and affordability concerns that have dampened housing sales. 

Additionally, legal pressures—such as the National Association of Realtors’ recent historic settlement on agent compensation—have forced brokerages to reevaluate their business models.

Industry expert Mike DelPrete noted the tough landscape, remarking, “Brokerages are deciding whether to stick it out or sell.”

What’s Next?

The acquisition positions Compass as a global player, leveraging Christie’s storied brand to enter new markets and attract high-net-worth clients. 

With the deal set to close in early 2025, all eyes will be on how Compass integrates these assets to counteract market challenges and continue its growth trajectory.

Shares of Compass rose 2% in premarket trading following the announcement.