Two small-cap companies are forming the sixth-largest residential homebuilder in the U.S.

Dream Finders Homes, a residential homebuilder with a market capitalization of $1.36 billion, has agreed to acquire its smaller competitor, Beazer Homes. The deal will create the sixth-largest company in the industry. Negotiations between the companies lasted more than half a year, during which Beazer rejected five offers from Dream Finders.

Dream Finders has agreed to acquire Beazer at a price of $33.50 per share, the parties announced. This is roughly in line with the stock's market price on August 6, the day before the deal was announced.

The Wall Street Journal (WSJ) calculated that the entire company is valued at $915 million for the transaction, based on the number of its outstanding shares. Taking debt into account, Beazer’s value is approximately $2.2 billion, according to the press release.

The combined company will become the sixth-largest residential homebuilder in the U.S., according to the parties. Increased efficiency and reduced duplicate costs will lead to annual savings of $100 million, the statement adds. As early as the first year after the merger, Dream Finders’ earnings per share will increase by a “double-digit percentage,” the company says. In 2025, diluted earnings per share were $2.14.

The boards of directors of both companies voted unanimously in favor of the deal. The parties plan to close the transaction in the fourth quarter of 2026, subject to approval by Beazer’s shareholders and regulatory authorities.

The companies’ shareholders reacted to the news of the deal in different ways. Dream Finders shares rose more than 7% to $15 on the New York Stock Exchange on August 7. Beazer’s share price fell slightly, and its market capitalization stood at $906 million at the close of trading.

It took Dream Finders several months to finalize the deal. In February, it made an offer to acquire Beazer

for $28.5, then raised its offer to $29 per share in March, according to the WSJ.

Following the release of its second-quarter results, Beazer reported a loss, causing its stock price to decline. This prompted Dream Finders to lower its valuation of the competitor to $25.75 per share. But after Beazer began receiving acquisition offers from other bidders, Dream Finders raised its offer first to $29.25 per share, then to $32, according to the WSJ. The final offer valued Beazer at $33.5.

The deal is “generally positive” for Texas-based Dream Finders, wrote BTIG analyst Ryan Gilbert (as quoted by Barron’s). The companies’ geographic presence and their products “complement each other,” he noted.

Only two Wall Street analysts are tracking Dream Finders, and both recommend holding its stock. The average price target is $18, which is 20% higher than the stock's last closing price.