Home Topics Real Estate Fathom continues the buying frenzy with E4: 9 Holdings

Fathom continues the buying frenzy with E4: 9 Holdings

According to an announcement on Wednesday, Fathom Holdings is continuing its buying spree with the purchase of E4: 9 Holdings for $ 26.75 million. Through the acquisition, Fathom Holdings will own mortgage, insurance and lead generation companies such as Encompass Lending Group, Dagley Insurance Agency and Real Results.

The purchase price of $ 26.75 million includes $ 10 million in cash and $ 16.75 million in common stock of Fathom Holdings. Certain E4: 9 Holdings shareholders may also choose to accept additional common shares of Fathom Holdings in lieu of cash.

“Finding a wonderful and successful company to join our Fathom family is one thing, but knowing that leadership is what drives us, shares our passion, values ​​and wants to serve others encouraging and speaks volumes about why they have had such incredible experiences, “said Josh Harley, chairman and CEO of Fathom.

The subsidiaries of E4: 9 Holding are based in Katy, Texas. The Encompass Lending Group and Dagley Insurance Agency serve home buyers, homeowners, and business owners across Texas and Colorado. Real Solutions has a national reach with Farmers Insurance, Nationwide, Allstate and Independent Insurance Agent among its top lead generation clients.

The companies’ 2020 revenue and other key performance metrics will be available once the deal is closed, a Fathom spokesperson told Inman.

Harley said the acquisition of E4: 9 Holdings and its subsidiaries fulfills its post-IPO plans to add mortgage, property and insurance services to Fathom’s repertoire to provide a complete consumer experience. Each of the company’s platforms will be integrated with Fathom’s IntelliAgent platform, which Harley believes will increase the Fathom agent’s value proposition and attract more employees.

“We believe that this acquisition, like our previous acquisitions, will bring strong leadership, more revenue to our business, more agents to our platform, and more revenue per transaction, while better serving our agents, customers and the industry as a whole He explained. “Ultimately, this should mean greater long-term and sustainable value for our shareholders.”

The integration process begins as soon as the deal is closed. After that, Fathom will work to bring Encompass and Dagley’s services to all 24 markets.

Since going public nine months ago, Fathom Holdings has been quick to snap up companies to bolster its IntelliAgent platform and move the company closer to its goal of opening a national portal.

Including the purchase of E4: 9 Holdings, Fathom has spent more than $ 35 million on Naberly Solutions, LiveBy, Verus Title and Atlanta-based indie broker Red Barn Real Estate. Fathom did not announce the purchase price of Naberly, Red Barn Real Estate and Verus Title.

Fathom’s latest earnings call revealed that the company is getting closer to profitability with its generally accepted accounting principles (GAAP) closing from $ 4.1 million in 2019 to $ 1.3 million in 2020.

Email Marian McPherson

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