The deal, approved by both companies' boards, is expected to close next year.
The real estate brands will continue to operate under their individual names.
"This is a tremendous opportunity to combine our resources and achieve even more impressive innovation that will benefit consumers and the real estate industry," Rascoff said in a release.
They will vote their shares in favor of the deal, according to the merger announcement.
The companies expressed hope that the merger will provide better opportunities for leveraging ad sales, the primary source of revenue for both companies.
According to a release, the combined revenue of both companies represents less than 4% of the estimated
Now the two companies will be able to "go to our advertisers with one platform," Rascoff said in a call with analysts.
The companies' stock prices jumped last week on rumors that a deal was imminent.
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