Bed Bath & Beyond Inc. (NASDAQ:BBBY) has entered a definitive agreement to acquire real estate services platform Fathom Holdings for approximately $53.38 million as it pushes deeper into the full homeownership lifecycle.
The deal calls for Fathom shareholders to receive 0.2236 shares of Bed Bath & Beyond common stock for each Fathom share held, subject to certain closing adjustments
The acquisition adds Fathom’s brokerage, mortgage, title, insurance and homeowner financial services capabilities to Bed Bath & Beyond’s growing “Everything Home” platform. Bed Bath & Beyond said the combined company aims to build what it described as the nation’s first end-to-end homeownership platform, connecting home buying, financing and furnishing under one roof. The deal is expected to accelerate adoption of Fathom’s intelliAgent technology platform and generate cross-selling opportunities across home services and products.
Fathom said the tie-up would give it immediate access to millions of Bed Bath & Beyond customers at key moments in the homeownership journey, along with greater capital to invest in its technology platform and agent network. Fathom Holdings is a national, technology-driven real estate services platform whose brands include Fathom Realty, Encompass Lending, intelliAgent, Real Results and Verus Title. Separately, Bed Bath & Beyond announced that Adam Rothstein, a current Fathom board member, has been named interim CEO, and that Daniel Weinmann, the company’s vice president of finance, has been appointed CFO, both effective immediately.