Neighborhood Intelligence Scraps Fathom Deal, Keeps tZero

Neighborhood Intelligence called off its proposed acquisition of Fathom Holdings on Monday, its second deal termination in a month, choosing to keep its blockchain and digital assets rather than transfer them as part of the purchase.

Fathom, a real estate platform, was the subject of a reworked agreement in late September that would have transferred "substantially all" of Neighborhood Intelligence's digital assets to the company. That bundle included nearly 40% direct and indirect ownership of tZero Group, Medici-related fund assets and a direct investment in GrainChain. Neighborhood Intelligence had valued those digital contributions at about $130 million.

The decision follows the collapse of a separate agreement for F9 Brands last month. Neighborhood Intelligence, formerly Bed Bath & Beyond Inc., spent the past year or so on an acquisition spree to expand beyond retail into home ownership and services. It closed on The Brand House Collective, formerly Kirkland's Inc., and The Container Store earlier this year, adding established retail brands to its portfolio. It also signed deals for SFV Services and Installed Right, and agreed to acquire F9 Brands, a transaction that fell through.

The company now says it is walking back that acquisition-led approach. Neighborhood Intelligence is focusing on strengthening its core business, driving organic revenue growth, improving margins and reducing costs. It said retaining ownership of its blockchain and digital assets, particularly tZero, is necessary.

Neighborhood Intelligence and Fathom said they remain open to collaboration. The companies are "exploring ways to work together where collaboration can create value," which could include data sharing and the use of each other's businesses, technology, relationships and other assets.

Lemonis tied the reversal to feedback from investors.