Business
Fathom Holdings Signs Definitive Agreement to Acquire E4:9 Holdings, Parent Company of Encompass Lending Group, Dagley Insurance Agency, and Real Results
-- Acquisition Expected to Add New, Incremental Revenue Streams and Enhance Revenue per Transaction -- CARY, N.C., April 14, 2021 /PRNewswire/ -- Fathom
About this update from Fathom Holdings Inc.
[{"type":"text","content":"-- Acquisition Expected to Add New, Incremental Revenue Streams and Enhance Revenue per Transaction --\n\n\nCARY, N.C., April 14, 2021 /PRNewswire/ -- Fathom Holdings Inc. (Nasdaq: FTHM), a holding company that primarily operates through its wholly owned subsidiary, Fathom Realty, LLC, a national, cloud-based, technology-driven, residential real estate brokerage, today announced that it has signed a definitive agreement to acquire E4:9 Holdings, Inc., a holding company with three operating subsidiaries serving the residential real estate sector: Encompass Lending Group, Dagley Insurance Agency, and Real Results.\n\n \n \n \n \n \n \n\n \nThe transaction is anticipated to close in the second quarter and is expected to be immediately accretive. The addition of E4:9 Holdings will provide Fathom with new and significant incremental revenue streams, enabling its agents to offer critical ancillary services to their clients, and enhancing Fathom's revenue per transaction. \nThe purchase price is approximately $26.75 million, consisting of approximately $10.0 million in cash and $16.75 million in Fathom Holdings common stock, provided that certain stockholders of E4:9 Holdings may elect to accept additional shares of Fathom Holdings common stock in lieu of cash. \nBased in Katy, Texas, E4:9 Holdings, through its three operating subsidiaries, provides mortgage, insurance, and insurance industry lead generation services.\n\"I cannot begin to fully express how excited I am with our planned acquisition of E4:9 and its three operating companies,\" said Josh Harley, Fathom's Chairman and CEO. \"These are three amazing companies, all under one equally amazing group of business leaders and entrepreneurs. It is one thing to find a wonderful and successful business to bring into our Fathom family, but to know that the leadership shares our drive, passion, values, and desire to serve others is encouraging, and speaks volumes to why they have experienced such incredible success. \n\"I have to give massive praise to both the Fathom and E4:9 teams for their tireless work and dedication to getting this transaction done. E4:9's businesses, as part of Fathom, should speed our path to profitability, and equally important, increase our revenue per transaction, while providing a better experience for our agents. We are successfully delivering on our promis...