Fathom Announces Divestiture Of Dagley Insurance To DIA Founder Nathan Dagley For A Total Purchase Price Of $15M
Portfolio Pulse from Benzinga Newsdesk
Fathom Holdings Inc. (NASDAQ:FTHM) has sold its insurance business, Dagley Insurance, to its founder Nathan Dagley for $15M, aiming to strengthen its financial position and support growth. The deal includes $8M upfront and $7M over 24 months. Dagley Insurance will continue supporting Fathom Realty's agent network in 47 states, ensuring no change in service for Fathom Realty's agents. This strategic move is expected to provide Fathom with capital to navigate future challenges and pursue growth opportunities.
May 06, 2024 | 8:13 pm
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Fathom Holdings Inc. divests Dagley Insurance for $15M to enhance financial stability and fuel growth initiatives. The transaction includes an $8M immediate payment and $7M over two years, with Dagley continuing to support Fathom Realty agents.
The divestiture of Dagley Insurance is a strategic move by Fathom Holdings Inc. to strengthen its financial position and support its growth initiatives. By securing a total purchase price of $15M, including a significant upfront payment, Fathom is likely to experience a positive impact on its balance sheet. This influx of capital is expected to provide the company with the necessary resources to navigate potential future challenges and invest in growth opportunities. The continued partnership with Dagley Insurance ensures that Fathom Realty agents maintain their current level of service, which could positively influence Fathom's operational efficiency and agent satisfaction. This strategic decision is likely to be viewed positively by investors, potentially leading to a short-term increase in FTHM's stock price.
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