Madison-based Realogy Holdings Corp. announced Tuesday that it is buying ZipRealty, Inc., for approximately $166 million in cash.
The global real estate brokerage said in a news release it is paying $6.75 per share for the Emeryville, California, firm’s residential brokerage operations, including 23 offices across the U.S. and its real estate technology platform.
"The acquisition of ZipRealty represents a strategic investment in the growth of our business and a compelling opportunity to further enhance shareholder value," Richard A. Smith, Realogy's chairman, CEO and president, said in the release. "This transaction has two uniquely attractive facets for Realogy. First, we are acquiring an established, highly productive, technology-based national residential brokerage operation. Second, we will capitalize on the innovative technology platform that ZipRealty has honed over more than a decade of development.”
The transaction is expected to close in the third quarter, subject to regulatory approval.
Realogy said it expects to incorporate 17 of ZipRealty’s offices into existing ones it operates under the NRT subsidiary, and operate the remaining six on a stand-alone basis. ZipRealty CEO and President Lanny Baker will stay on as ZipRealty’s CEO, reporting to Alex Perriello, CEO and president of the Realogy Franchise Group. In addition, Realogy said, it will maintain the ZipRealty headquarters in California.
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