Compass buys Anywhere Real Estate in a $10B deal, changing the face of the U.S. housing industry in today's climate of consolidation.

Compass has announced plans to acquire rival Anywhere Real Estate in an all-stock deal with an estimated $10 billion inclusive of debt. The merger will have major brands from brokerage companies such as Century 21, Coldwell Banker, ERA, and Sotheby's International Realty under a single umbrella, which could significantly reform the U.S. real estate landscape.

Shares of Anywhere Real Estate jumped more than 48% after the news, and the stock of Compass slipped 16%. The deal, which was agreed on by the two companies' boards, will increase Compass' number of real estate agents, who are based all around the world, from 40,000 to around 340,000. Compass expects the merger will yield more than $1 billion in new revenue from participating in Anywhere's title, escrow and relocation businesses.

The combined company will have approximately an 18% market share in the U.S. real estate market, according to UBS analyst Chris Kuntarich. Industry experts tell us that the move reflects a general trend of consolidation as the real estate industry copes with high home mortgage rates, rising home prices, and a long slump in the housing market.

"By coming together to create what are now two of the best companies in our industry, we are now able to build a place where real estate professionals can thrive for decades to come," said Compass CEO Robert Reffkin.