On October 5, 2026, Neighborhood Intelligence, Inc. (NASDAQ: NXH) and Fathom Holdings, Inc. (NASDAQ: FTHM) announced the mutual termination of their previously announced merger agreement. The agreement, dated June 16, 2026, was terminated by mutual written consent, rendering it null and void and relieving both parties of their obligations under the terms.
The Boards of Directors for both companies concluded that proceeding with the merger at current valuations would not appropriately reflect the fair value of either company. The companies determined that the timing was not right to combine their businesses.
Following the termination, Neighborhood Intelligence has decided to retain ownership and control of its blockchain and digital asset investments, specifically its stake in tZERO. The company believes this decision preserves the opportunity for shareholders to participate in the potential future value of these assets as the blockchain ecosystem develops.
Despite the termination of the merger, the companies intend to explore strategic collaboration. Areas under consideration include data sharing and utilizing each company’s complementary businesses, technology, and relationships. Both entities remain focused on their respective operating priorities and expect to remain independent.
In a separate business update, Neighborhood Intelligence reported that its base business trajectory remains on track. The company noted strong revenue momentum and significant year-over-year improvement in gross margins, which is expected to exceed 30% ahead of its previously stated target. Additionally, the company stated that cost reductions and anticipated merger synergies are developing faster than originally expected.
