Realogy Buys Oncor International

"We look at this acquisition from a very strategic standpoint," Alex Perriello, president and CEO of the Realogy Franchise Group, tells GlobeSt.com, noting that initial conversations on the acquisition began in December. "It helps create a value circle in the commercial business. We have created, over the past 10 years, a very similar value circle on the residential side of the business, and this is really modeled after that. It's really a Realogy-level commercial value circle strategic play."

Realogy officials declined to provide financial details of the acquisition, releasing only a statement that read, "the acquisition is not expected to have a material impact on Realogy's financial results." On the operational side, Oncor will function as a distinct unit within the Realogy Franchise Group, with David Matthes continuing to serve as president and CEO of the unit.

"His job will be to grow the Oncor network," Perriello says. "On a parallel course, we will continue doing what we have always been doing with Coldwell Banker Commercial. We have a great deal of experience here at Realogy of managing multiple brands."

"We did a lot of due diligence and a lot of analysis on the various options available to Oncor International," Matthes tells GlobeSt.com. "Having done all that, we found that Realogy was a perfect strategic fit for Oncor International's future growth and expansion. We've had an opportunity to talk to a lot of member firms, and to a firm, everybody is extremely excited about the opportunity that joining up with Realogy presents to us, both on a strategic basis and on an organic growth basis."

"Oncor's referral network complements Realogy's existing franchise networks of commercial real estate brokerages," Perriello says. "We anticipate that the combined reach of our groups will increase referral traffic and strengthen Realogy's ability to provide access to services on a global basis."

"We believe Realogy's relationships in the business-to-business segment will give our member companies even greater opportunities to expand product lines, such as corporate, investment and retail services, to an even broader base of businesses in the US and abroad," Matthes adds. For its part, Oncor, which was formed in 1977, generated $27.8 billion in commercial real estate sales volume in 2005.