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.
Shares of Fathom Holdings surged 82% on the news.