Ori Alon’s six-year-old company Compass has grown aggressively by hiring agents and acquiring firms in new cities in the US. The company continues to expand by acquiring Paragon Real Estate Group that closed $2.3 billion in sales last year. Terms of the deal were not disclosed.
Two years after it launched in Bay Area “Compass is now the number one real estate company in San Francisco by sales volume and market share,” Compass said in an announcement on Monday.
With about 230 Paragon’s agent in San Francisco, Greenbrae and Danville, and Compass’ 275 agents in the Bay Area, the company has grown to more than 500 agents representing more than $4.5 billion in sales volume last year, according to Compass press release.
In 2018 in San Francisco, in a market where home prices, fueled by the Silicon Valley tech industry, continue to surge to record highs. Paragon ranked No. 2 with $875.6 million in transaction volume. Compass ranked No. 4 with $867.3 million.
In March Real Trends published a rating of the largest US real estate companies, which stated that Compass is the sixth largest real estate agency in the United States with a sales turnover of $ 14 billion in 2017, compared to a turnover of $ 7 billion in 2016. According to estimates, Compass expects to double its sales in 2018 for the third consecutive year.
Ori Alon, chairman of Compass, said that “The more our technology reaches more regions in the United States, the greater its impact. After the acquisition of Paragon, our technology will be the leader throughout San Francisco and the Silicon Valley, areas of strategic importance to Compass, which will help us expand our activities to any major US city in a shorter time. These are important steps in the way of global expansion Compass technology. ”
In December 2017, Compass has raised $ 450 million from Softbank at a company value of $ 2.2 billion. Other investors include Fidelity Investments, Wellington Management, Institutional Venture Partners (IVP), Thrive Capital, 406 Ventures and Founders Fund, which is managed by Peter Thiel, one of Facebook’s first investors and a founder of PayPal.
Compass has grown significantly in recent months, and plans to open 70 new offices this year. The main cities in which Compass operates today are New York, Los Angeles, Chicago, Boston, Seattle, Washington DC, Dallas, Philadelphia and Miami.
Dr. Ori Alon co-founded Compass in 2012 with his business partner, Robert Rafkin, a former White House consultant and head of the office of CEO and president of Goldman Sachs.
Previously Alon worked at Google after selling his patented search algorithm, Orion, to the search giant. In 2011 he also sold his previous company, Julpan, to Twitter.
Compass operates a technology platform that enables users and agents to make informed decisions in real estate by providing in-depth and high-quality information on real-time pricing trends and market fluctuations. In addition, the platform presents detailed information on regions, neighborhoods, recent transactions, recreation and education, and more.