MADISON, NJ—Reology Holdings Corp. is buyingcompetitor ZipRealty for $166 million in a$6.75-per-share all-cash deal that managment expects to close inthe third quarter. Locally based Reology's acquisition ofZipRealty, which is based in Emeryville, CA, outside of SanFrancisco, will give the former 23 offices across the country thatspecialize in a real estate-technology platform for residentialbrokers.

The deal, which has been approved by ZipRealty's board ofdirectors, is attractive to Reology both for beefing up itsresidential-brokerage capabilities, and also ZipRealty's platform,which technologically "provides aseamless digital experience for consumers, brokers and salesassociates across the entire real estate transaction life cycle,"says RichardSmith, Realogy's chairman, chief executive officer andpresident.

ZipRealty, with about 1,800 sales associates, was responsiblefor nearl $2.7 billion in commercial real estate deals over itslast fiscal year, which ended Dec. 31. The firm itself had a$5.4-million loss over those 12 months but posted $76 million inrevenue and $32 million in gross profit during theperiod.