Cary-based Fathom Holdings has acquired My Home Group, an Arizona-based real estate brokerage ranked 27th in the nation by transaction volume in a deal that adds 2,200 agents to its network, according to a Form 8-K filing with the SEC on Monday.
Fathom Holdings provides back-office functions for agents under a flat-fee arrangement. Founded in 2010, Fathom, which became a public company in 2020, reported having 241 full-time employees and 11,795 licensed agents as independent contractors at the end of 2023. This acquisition expands its agent network to 14,500 nationwide.
My Home Group completes approximately 12,000 transactions annually, according to a release. Fathom completed more than 38,100 transactions in 2023, compared with 44,700 the year before, according to its annual report. The National Association of Realtors reported a nationwide decrease from more than 4 million in 2022 to 3.78 million in 2023, related to economic uncertainties and rising interest rates.
Fathom did not disclose the price of the acquisition and did not respond to follow-up questions. The company has a quarterly conference call scheduled for 5 p.m. Thursday, Nov. 7.
Fathom will retain the name My Home Group and its co-founders, Jereme Kleven and Mark Hutchins, will continue to oversee daily operations. The company was founded in 2005 and it has made Inc. 5000 list of fastest-growing companies for seven consecutive years. It operates mostly in Arizona, but also has offices in Nevada and the state of Washington.
Fathom plans to cross-sell its mortgage and title services to My Home Group’s client base.
“Arizona’s real estate market presents significant opportunities, and My Home Group’s agent-focused approach aligns seamlessly with Fathom’s culture,” Fathom CEO Marco Fregenal says in a release.
Fathom operates in 40 states and the District of Columbia. It reported net losses of $24 million in 2023, compared twith losses of $27.6 million the year before. For the year ending Dec. 31, 2023, revenue declined 16% to $345 million from $413 million the previous year. Company shares have traded between $1.32 and $4.33 in the past year, and were trading around $2.58 midday Monday. It has a market capitalization of $53.78 million.