Bed Bath & Beyond Inc has continued its acquisition streak after signing a deal with technology-driven real estate services platform Fathom Holdings.
Fathom integrates residential brokerage, mortgage, title, insurance and SaaS (Software as a Service) offerings powered by IntelliAgent, its proprietary cloud-based software.
Bed Bath & Beyond said the technology capabilities will complement its ‘Everything Home’ strategy and accelerate its vision to create the nation’s first end-to-end homeownership platform.
The Everything Home strategy centers on three interconnected pillars: homeownership and transactions, omnichannel commerce, and home services. The Fathom acquisition expands the homeownership and transactions pillar by adding capabilities across brokerage, mortgage, title, insurance and homeowner financial services.
The company believes combining technology, data and intelligence will enable it to better anticipate customer needs, allocate resources and deliver more relevant experiences.
“Homeownership remains fragmented. People buy homes from one company, finance them through another, furnish them through a third and renovate them with someone else,” said Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond.
“This acquisition, along with others we have announced and may pursue in the future, presents an opportunity for us to integrate the capabilities that matter most while eliminating redundancy across processes, infrastructure and leadership,” Lemonis added.
Adam Rothstein, interim CEO of Fathom, added, “Bed Bath & Beyond’s broad customer reach and strong brand recognition, paired with our scalable real estate technology platform, creates a compelling opportunity to redefine the homeownership lifecycle and build lasting value for our shareholders.”
The deal implies an equity value for Fathom of approximately $53.38 million and reflects an exchange ratio of 0.2236 shares of Bed Bath & Beyond common stock for each Fathom share.
The transaction is expected to close in the second half of this year.
The move follows Bed Bath & Beyond’s acquisitions of Installed Right and SFV Services last week.
