Re/Max Holdings, Inc. of Denver today announced that Re/Max, LLC has entered into an agreement to acquire the North America regions of Re/Max Integra, for approximately US$235 million in cash. The closing of the transaction is contingent on completion of the financing, the company says in a news release. The transaction is expected to close in the third quarter.
Once completed, the acquisition will bring nearly 19,000 agents (approximately 12,000 in Canada and 7,000 in the U.S.) and more than 1,100 independently owned and operated Re/Max offices under the Re/Max, LLC Company-Owned Region (COR) umbrella. Acquiring independent Re/Max regional franchises has long been a key pillar of the company’s growth strategy, Re/Max says.
“We are thrilled to announce this regional acquisition, which is by far the most significant in the history of our company in terms of the size of territory and number of agents,” says Adam Contos, Re/Max Holdings CEO, in the release. “The addition of these strategic and geographically desirable regions enhances our ability to continue to scale, brings many attractive growth opportunities and simplifies our operational structure by creating greater efficiencies. I wish to thank Re/Max Integra co-founders Frank Polzler and Walter Schneider – and their amazing families – for their dedication and passion in growing the Re/Max brand over the 40-year tenure with our network. Their Re/Max story moves forward with Integra’s Re/Max Europe region, where they’ll continue to have a positive impact on region owners, franchisees, sales associates and consumers.”
The North America regions being acquired by Re/Max, LLC include five Canadian provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island) and nine U.S. states (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, Indiana, Minnesota and Wisconsin).
“Frank and I knew Re/Max was special from the very beginning in 1980,” says Walter Schneider, Re/Max Integra president and co-founder. “We were excited about taking an incredibly solid concept that we could help build from the ground up. It’s been a wonderful journey and the friendships we’ve made along the way will last a lifetime. We are confident in the leadership of Adam Contos, Nick Bailey and the entire Re/Max, LLC team, as well as in their ability to facilitate a smooth transition and ensure a bright future for our affiliates in North America. We thank Re/Max co-founders Dave and Gail Liniger for their vision, partnership and friendship during these past four decades, and we look forward to continuing to represent the Re/Max brand in Europe.”
“Helping grow Re/Max into the industry’s premier brand and network has been the experience of a lifetime,” says Frank Polzler, Re/Max Integra chairman and co-founder. “Our North American regions will be in excellent hands and I have no doubt that this new leadership will build on our foundation and take these regions to even greater heights.”
Re/Max Holdings will provide further details on the transaction during a conference call to be held on Friday, June 4, 2021, beginning at 8:30 a.m. ET. Interested parties can access the conference call using this link.
Nick Bailey, who has served as chief customer officer since September 2019, has been promoted to president, Re/Max, LLC. Bailey will lead all aspects of the Re/Max brand and business globally. Prior to rejoining Re/Max in 2019, Bailey served as president and CEO of Century 21 Real Estate LLC, a subsidiary of Realogy, and as a vice president at Trulia/Zillow.
When REM celebrated our 25th anniversary in 2014, we wrote:
“Re/Max founder and chairman Dave Liniger has often said that if it wasn’t for Re/Max Ontario-Atlantic Canada founders Frank Polzler and Walter Schneider, the entire Re/Max organization might have collapsed in its early days. After launching their company in 1980, they became critical to the future success of the organization, eventually expanding to own several U.S. master franchises and leading Re/Max expansion into Europe.”
Schneider told REM: “It is hard to dispute that Re/Max led the way through several paradigm shifts seen in the industry…We revolutionized commission structures, opened doors to women – who are a significant force in the sector today and were among the first to embrace the notion of teams…Our focus on the agent has led us to continually innovate, and that is something we are very proud of.”