UPDATED, 3 p.m., Sept. 22, 2021: Compass said it’s acquiring a Colorado title and escrow company, expanding its reach into eight states just one week after buying a firm in Texas.
The brokerage said on Wednesday that its purchase of First Alliance Title, which has three offices in Denver and a staff of 39, will close by the end of the year. Terms weren’t disclosed.
The company first entered the title and escrow business a year ago when it bought Seattle startup Modus and Washington, D.C.’s KVS Title. Compass said last week that it was buying Dallas-based LegacyTexas Title.
Compass CEO Robert Reffkin told analysts on an earnings call last month that the pace of acquisitions would probably slow in the second half of the 2021 and that costs associated with them will be reported in coming months. Reffkin and CFO Kristen Ankerbrandt spent a large portion of the call explaining how the company will become profitable and build new businesses that will be offered to agents and their clients through its “end-to-end” platform.
Thanks to the strong housing market, many brokerages are spending heavily to build out new and pre-existing lines of business.
Correction: This story has been updated to include that Compass’ title business operates in eight states.