Bed Bath & Beyond's $53M Fathom Deal Expands Home Services

Bed Bath & Beyond (BBBY) on Wednesday said it would acquire Fathom Holdings (FTHM), a real estate services platform, in an all-stock transaction valued at roughly $53 million. The deal is part of the company's Everything Home strategy, which aims to connect its retail home-goods business with the home-buying and selling process.

Fathom operates a technology-driven real estate brokerage that uses a flat-fee commission model. The acquisition gives Bed Bath & Beyond a direct link to consumers at the point of a home transaction, when spending on furniture and renovations tends to increase. The company said the purchase supports its goal of integrating home goods with real estate services.

The move comes as Bed Bath & Beyond's retail business has struggled with declining sales. Adding a real estate services arm diversifies revenue but also exposes the company to the housing market cycle. Integration risks are typical in cross-industry deals.

The all-stock structure means Fathom shareholders will receive Bed Bath & Beyond shares. The companies expect the transaction to close in the second half of the year, subject to regulatory and shareholder approvals.