Growing real estate tech company Compass is assuming Pacific Union, the fifth largest brokerage in the nation and the biggest independent brokerage in California, according to Real Trends.
Compass is serious about growth and has been on an absolute tear since raising a whopping $775 million in funding over the last few years.
Thanks to SoftBank, Compass is the unquestioned belle of the real estate tech investment ball, poised for explosive growth after having received a $450 million investment from the Japanese tech company's investment arm, which was billed at the time as the largest investment a real estate tech company has ever received.
And now, the company is putting some of that money towards seriously growing its California business by acquiring Pacific Union.
"In recent years, real estate professionals and brokerage firms have been reacting to the world others are attempting to create,” Compass Founder and CEO Robert Reffkin said in a statement. “I believe the combination of Compass and Pacific Union will be a definitive step in building a company that can ensure the future of real estate is driven by the vision and aspirations of real estate professionals.”
The company has committed to planting its flag in the top 20 cities in the U.S. and expanding into over 65 new offices by the end of this year. The acquisition of Pacific Union is a big play for Compass' growth efforts in the West and evidence that its intent to grow is both real and potent.
Pacific Union was founded in 1975 and acquired by its current CEO Mark McLaughlin in 2009. The company has grown from $2.1 billion in sales volume in 2009 to $14.1 billion in 2017, operating out of over 50 offices across California.
“This is an exciting time as we embark on this partnership with Compass," McLaughlin said in a statement.
"I look forward to working alongside the Compass team to continue to improve the lives and businesses of our real estate professionals," he added.
With the addition of Pacific Union, Compass’ national footprint has swollen to over 6,400 employees representing $28 billion in sales volume in 2017.
Financial terms of the deal were not disclosed.