CARY, N.C. - Fathom Holdings Inc. (NASDAQ:FTHM), a technology-driven real estate services company, announced today the acquisition of Arizona-based brokerage My Home Group, which is recognized for its substantial transaction volume. This move bolsters Fathom's national presence, bringing its total agent network to over 14,500.
My Home Group, ranked 27th in the nation by transaction volume, adds more than 2,200 agents to Fathom's roster and is known for completing around 12,000 transactions each year. Fathom intends to maintain the My Home Group brand, with co-founders Jereme Kleven and Mark Hutchins continuing in their leadership roles.
The acquisition is seen as a strategic enhancement of Fathom's market position in Arizona, particularly in the Phoenix area, one of the fastest-growing U.S. regions. This expansion allows Fathom to capitalize on the area's economic growth and population increase by providing integrated real estate services.
Fathom's CEO, Marco Fregenal, expressed enthusiasm for the merger, noting the shared vision of supporting and empowering agents. He emphasized that the acquisition is a key step in Fathom's Southwest expansion and aligns with its sustainable growth strategy.
Kleven and Hutchins also commented on the merger's alignment with their company's values and the benefits it brings to their agents, including access to Fathom's technology and resources.
The company will offer more details on the acquisition during its quarterly conference call on Thursday, November 7, 2024.
Fathom Holdings Inc., through its brands such as Fathom Realty and Verus Title, provides an array of real estate services and leverages its proprietary cloud-based software, intelliAgent. The acquisition of My Home Group is expected to enhance Fathom's service offerings and improve the transaction experience for clients in Arizona.
This article is based on a press release statement from Fathom Holdings Inc.
In other recent news, Fathom Holdings has been active with several significant developments. The company reported a decrease in total revenue for a recent quarter, despite a 12% growth in its real estate agent network and significant expansion in its mortgage business. Fathom Holdings also secured $5 million in funding through the issuance of senior secured convertible promissory notes.
Fathom Holdings has made notable changes to its executive team, with Monica Schroeder appointed as the new President of Verus Title, and Penelope Vockel promoted to Chief Operating Officer. The company also expanded Verus Title's operations into Rhode Island, increasing its footprint to 29 states.
In legal developments, Fathom Holdings agreed to pay $2.95 million to settle a lawsuit involving the National Association of Realtors. The company maintains that this settlement is not an admission of liability or wrongdoing.
On the strategic front, Fathom Holdings announced a significant amendment to its 2019 Omnibus Stock Incentive Plan, increasing the share reserve by 1.6 million shares. The company also plans to reassess financial guidance in Q4 2024 due to new revenue share models. These are the recent developments in Fathom Holdings' business operations.
InvestingPro Insights
The acquisition of My Home Group by Fathom Holdings Inc. (NASDAQ:FTHM) comes at a time when the company's financial metrics paint a complex picture. According to InvestingPro data, Fathom's revenue for the last twelve months as of Q2 2024 stood at $327.31 million, with a revenue growth decline of 12.09% over the same period. This context makes the acquisition particularly significant as a potential growth driver.
An InvestingPro Tip highlights that Fathom is "quickly burning through cash," which could explain the strategic importance of acquiring a high-volume brokerage like My Home Group. This move may help Fathom improve its cash flow situation by increasing transaction volume and market share in the lucrative Arizona market.
Another relevant InvestingPro Tip indicates that the stock "generally trades with high price volatility." This volatility is reflected in the company's recent stock performance, with a strong 62.42% return over the last six months, despite a 28.97% decline year-to-date. The acquisition news could potentially impact this volatility, as investors react to Fathom's expanded market presence.
It's worth noting that InvestingPro offers 14 additional tips for Fathom Holdings, providing a more comprehensive analysis for investors interested in deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.