The combined company will have over 180,000 apartments and a pro forma equity market cap of $52 billion, targeting $175 million in synergies.
Equity Residential and AvalonBay Communities announced an all-stock merger creating a $69 billion enterprise-valued company with 180,000 rental apartments. The deal values AvalonBay shares at 2.793 Equity Residential shares each, giving AvalonBay investors a 51.2% stake in the new entity.
The combined company will have a pro forma equity market capitalization of $52 billion. Expected cost savings include $175 million in gross synergies, with $125 million net after tax reassessments. The transaction, approved by both boards, is set to close in the second half of 2026 pending shareholder approval.
The merger is structured as a tax-free reorganization and aims to streamline operations, as the companies overlap in 95% of markets. AvalonBay CEO Benjamin Schall will lead the merged entity, while Equity Residential CEO Mark Parrell will step aside.