Fathom Holdings has acquired a nine-person title agency with offices in Utah, Colorado and Virginia, expanding its title coverage in three states through “strategic expansion” of its geographic footprint.
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Fathom Realty sister company Verus Title is expanding its coverage in three states through the acquisition of Utah-based LW Traveling Title through parent company Fathom Holdings.
Real Estate Mergers & Acquisitions Co. brokered the deal for both parties, but terms were not disclosed. Traveling Title is headquartered in American Fork, and its nine team members also provide services out of an office in St. George, Utah. Colorado Springs, Colorado; and Buena Vista, Virginia.
Marco Fregnall
“Utah has a booming real estate market and is a strategic complement to our geographic footprint,” Fathom Holdings CEO Marco Fregenal said in a statement. “With the addition of Traveling Title, Verus Title is poised to leverage its technology tools and superior Service Commitment Providing unparalleled service in Utah, Colorado and Virginia. This expansion underscores Fathom’s commitment to providing comprehensive, innovative real estate solutions.
Paul Jurasevich
Paul Yurashevich, president of Verus Title, said that with the technology tools that Verus brings to the table, “we have a winning formula for a top-notch title product in the state.”
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Fathom Holdings generates more than 90% of its revenue from its real estate brokerage business, Fathom Realty, which also provides mortgages, title insurance, insurance and technology to agents.
After going public in 2020, Fathom acquired North Carolina-based Verus Title for $1.7 million, including $700,000 in cash and $1 million in Fathom stock.
Fathom’s acquisition of E4:9 Holdings and two other subsidiaries, Encompass Lending Group and Real Results, for $28.88 million in 2021 furthered the company’s goal of building an end-to-end real estate services platform.
Verus title position
Source: Verus Title.
Verus is a technology-focused title agency that works with underwriters such as Chicago Title, WFG, Fidelity, Old Republic and Stewart and has expanded its licensing footprint to 31 states and Washington, D.C.
Like many of its competitors, Fathom’s revenue has declined as rising mortgage rates have slowed home sales, but it continues to add agents and reduce losses. Fathom Realty has nearly 12,000 agents in the first quarter, and parent company Fathom Holdings cut its net loss by 30% from the fourth quarter to $5.9 million.
In April, Fathom formed a new joint venture, Verus Title Elite Texas LLC, to partner with independent teams and top Fathom agents across Texas. Fathom said it plans to establish joint ventures by the end of 2025 in most of the 30 states where its Verus Title subsidiary operates.
Fathom Holdings announced in May this year that it had sold its insurance subsidiary Dagley Insurance to founder Nathan Dagley for $15 million, with the proceeds going to strengthen the company’s financial position and support growth plans.
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