Judge rejects Realogy’s bid to force $400M sale of Cartus

Brokerage giant is now fighting to secure $30M breakup fee for scuttled deal to unload relocation business

National /
Jul.July 22, 2020 10:30 AM
Realogy CEO Ryan Schneider and SIRVA CEO Thomas Oberdorf

Realogy CEO Ryan Schneider and SIRVA CEO Thomas Oberdorf

A judge has rejected Realogy’s bid to compel the would-be buyer of its relocation business, Cartus, to close the $400 million purchase. And now, the brokerage giant is pursuing a $30 million breakup fee for its trouble, according to Inman.

Realogy sued Madison Dearborn Partners and subsidiary SIRVA in an effort to finalize the deal on a contract the firms entered into late last year. Realogy accused SIRVA and Madison Dearborn of using the coronavirus as an excuse to back out.

But SIRVA and Madison Dearborn said it called off the sale out of fear Realogy was near insolvency.

On Tuesday, a chancery court judge in Delaware sided with the defendants, according to Inman. The judge ruled that Realogy’s decision to sue Madison Dearborn and SIRVA violated the terms of the parties’ purchase agreement.

“Realogy, not SIRVA, caused the conditions to fail,” the judge said, according to a Bloomberg report.

Realogy will continue to operate Cartus and pursue its breakup fee from Madison Dearborn and SIRVA. [Inman] — Erin Hudson


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