Earlier today, Realogy announced it had entered into a definitive agreement to acquire the technology-based ZipRealty for $6.75 per share. The total transaction, which will be in all-cash, is valued at $166 million.
The acquisition will entail Realogy absorbing ZipRealty’s residential broker operations that include 23 offices nationwide and the company’s integrated real estate technology platform, which Realogy Chairman, CEO and President Richard A. Smith feels will help bolster the groups already impressive service amenities.
“ZipRealty’s end-to-end and multi-device software platform and advanced product development capabilities will further accelerate our efforts to drive web- and mobile-based lead generation and client conversion,” he says. “This will also serve to augment the investments we are already making to improve the experience of buying and selling a home for consumers, sales associates and brokers.”
Smith says the acquisition represents a significant investment in the future growth of Realogy.
ZipRealty’s Board of Directors has already unanimously approved the transaction and intends to recommend the buyout to its shareholders soon. Though subject to the satisfaction of customary closing conditions, including regulatory clearance, the offer is expected to close sometime in the third quarter of 2014.
While 17 of ZipRealty’s offices will fall under the umbrella of NRT, Realogy’s biggest franchise brand, six of the offices will continue operating as stand-alone brokerages. Realogy has also says it intends to maintain ZipRealty’s existing headquarters in Emeryville, Calif.