Realogy Holdings Corp. is acquiring ZipRealty Inc. for $6.75 per share in an all-cash transaction valued at approximately $166 million.
Richard A. Smith, chairman, CEO and president for Realogy, says the company will benefit from the acquisition in two main ways: ‘First, we are acquiring an established, highly productive, technology-based national residential brokerage operation,’ Smith says. ‘Second, we will capitalize on the innovative technology platform that ZipRealty has honed over more than a decade of development. ZipRealty's technology provides a seamless digital experience for consumers, brokers and sales associates across the entire real estate transaction life cycle.’
The deal means Realogy will significantly expand its footprint with the acquisition of ZipRealty's residential brokerage operations with 23 offices across the U.S.
‘The acquisition of ZipRealty represents a strategic investment in the growth of our business and a compelling opportunity to further enhance shareholder value,’ Smith says in the release.
By acquiring ZipRealty's brokerage operations, and through anticipated growth, Realogy expects to add approximately $20 million in revenue over the next three years. ZipRealty boasts more than 1,800 independent sales associates who closed more than $2.7 billion in closed sales volume last year. ZipRealty reported about $76 million in revenue and $32 million in gross profit for 2013.
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