Rocket Companies to Acquire Redfin in a $1.75 Billion Stock Deal

Rocket Companies announced on Monday its plan to acquire the real estate listing platform Redfin through an all-stock deal valued at $1.75 billion, with the goal of enhancing its lending operations.

Rocket’s offer of $12.50 per share represents an almost 115% increase over Redfin’s closing price on Friday. Following the announcement, Redfin’s share value surged by approximately 80%, while Rocket’s stock experienced an 8% decline during pre-market trading.

Established in 2004, Redfin features a home search platform boasting over 1 million listings for sale and rent, along with a technology-driven brokerage team of more than 2,200 agents.

With its primary business focused on mortgage lending, Rocket intends to leverage technology and artificial intelligence to connect potential buyers with its financing services and expedite transactions once the acquisition is finalized, according to the company.

The transaction is anticipated to conclude in either the second or third quarter, as stated by Rocket, a fintech firm based in Detroit.

The company projects that the merger will generate over $200 million in run-rate synergies by 2027.

Redfin’s current CEO, Glenn Kelman, will continue to lead the company post-acquisition.