Real, an AI-powered real estate platform, has entered into a definitive agreement to acquire RE/MAX Holdings for approximately $880 million. This acquisition will result in the formation of Real RE/MAX Group, a new global real estate entity.

Merger Details and Company Structure

The newly formed Real RE/MAX Group will be publicly traded on NASDAQ under the ticker symbol REAX. The combined company is projected to generate around $2.3 billion in annual revenue and $157 million in Adjusted EBITDA by 2025.

Combining Technology and Franchise Networks

This merger strategically combines Real’s AI-powered brokerage, serving over 33,000 agents in the U.S. and Canada, with RE/MAX’s extensive global franchise network. RE/MAX boasts more than 145,000 agents across over 120 countries and nearly 8,500 offices.

Integration of AI and Platform Enhancements

A key driver of the acquisition is the integration of Real’s technology, including the reZEN platform, into the RE/MAX infrastructure. The reZEN platform offers transaction management, AI automation, and financial services.

This integration aims to provide RE/MAX franchisees and agents with advanced tools and capabilities that were previously limited by scale. Tamir Poleg, Real’s CEO, will become Chairman and CEO of Real RE/MAX Group, calling the deal a “transformational moment” for the real estate industry.

Shareholder Options and Ownership

RE/MAX Holdings shareholders can choose to receive either $13.80 in cash per share or 5.15 shares of the new Real RE/MAX Group. A cash payout cap of between $60 million and $80 million has been established.

Real shareholders will receive one share of the combined company for each share they currently hold. Real will maintain a 59% ownership stake, while RE/MAX Holdings shareholders will hold approximately 41% on a fully diluted basis.

Financial Backing and Key Support

The transaction is being financed through a $550 million commitment from Morgan Stanley and Apollo Global Funding. Dave Liniger, RE/MAX’s founder and controlling shareholder, has voiced his support for the acquisition, believing Real is the ideal partner for the company’s future.

Headquarters and Recent Real Estate Trends

The combined headquarters will be located in Miami, with continued operations in Denver. Recent real estate trends include concerns about downsizing among potential sellers (73% expressing concerns) and increased housing starts in Toronto (up 23%), Vancouver (up 21%), and Montreal (up 26%).

Other notable activity includes KingSett Capital and Choice Properties REIT’s acquisition of First Capital REIT for $9.4 billion, and Elysium’s focus on affordable student housing.