Glide Agrees To Join Compass But Will Operate As An Independent Platform

Glide is joining Compass (COMP) three years after transforming the real estate transaction process. The transaction management company says it will continue operating as an independent platform once the merger is completed.

Glide will also continue to serve all agents, regardless of brokerage affiliation, through its Glide app and website. A merger with Compass will allow the company to invest in new features and functionality. Compass is planning to increase Glide’s reach among agents and partners. It also plans to expand its operations into new markets nationwide. Compass plans to enhance the “features and functionality” of the app for its agents and clients.

Compass will not have access to any transaction data on the Glide platform. The real estate transaction management platform says it has strengthened its privacy policy to ensure the privacy its users. Glide will also work with an independent privacy expert to ensure compliance with data privacy practices.

Amid the data protection commitment, Compass and Glide are committed to preserving access to the platform. There are also plans to develop new features that benefit the entire real estate industry.

“The Glide team has built a seamless software solution that has attracted tens of thousands of real estate agents in California, including many Compass agents who love the service. Their products have an excellent
track record of saving time, reducing risk, and simplifying every step of the offer process — and of course, making complex tasks seem effortless for agents and their clients,” stated Compass CTO, Joseph Sirosh.

The acquisition is expected to close in a few days subject to customary closing conditions.

Compass shares are down 15.29% year-to-date. (See Compass stock analysis on TipRanks)

Deutsche Bank analyst Lloyd Walmsley recently initiated coverage of the stock with a Buy rating and set a price target of $23. This implies upside potential of around 24% from current price levels.

According to Walmsley, Compass boasts strong top-line growth prospects given its ability to persuade real estate agents to join the platform. An increase in real estate agents on the platform is one of the catalysts that could drive long-term growth.

“The company has shown impressive execution through rapid organic growth and market expansion, supplemented with acquisitions. We have been impressed by the management team with a deep bench through the organization, including several Amazon alumni,” Walmsley stated in a research note.

Wall Street is cautiously optimistic about COMP’s long-term prospects. Consensus among analysts is a Moderate Buy based on 5 Buys, and 4 Holds. The average analyst price target of $23 implies 24.4% upside potential to current levels.

COMP scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that its performance is likely to align with market averages.