Mortgage lender Rocket Cos. to acquire real estate brokerage Redfin in deal valued at $1.75 billion

ALEX VEIGA

Mon, Mar 10, 2025, 8:46 AM 2 min read

Mortgage lender Rocket Cos. has agreed to get online existent property brokerage Redfin successful an all-stock woody valued astatine $1.75 billion.

The transaction, announced Monday, gives 1 of the nation's largest owe lenders an in-house web of much than 2,000 existent property agents crossed 42 states and Redfin's fashionable location and rental lodging listings platform, which draws astir 50 cardinal monthly visitors.

The woody values Redfin astatine $12.50 per share. Shares successful Seattle-based Redfin soared 68.5% successful greeting trading to $9.81 per share, portion shares successful Detroit-based Rocket Cos. slumped 15%.

Detroit-based Rocket expects the acquisition volition prevention the institution $140 cardinal successful costs by eliminating duplicative operations and different expenses. Rocket besides anticipates the determination volition boost gross by much than $60 cardinal by enabling the institution to link its clients with Redfin’s agents and, ultimately, offering those customers different existent property services that Rocket provides, including rubric security and indebtedness servicing.

Redfin CEO Glenn Kelman is expected to stay astatine the helm of the existent property brokerage, reporting to Rocket’s CEO, the companies said.

Under the presumption of the deal, each stock of Redfin communal banal volition beryllium exchanged for a fixed ratio of 0.7926 shares of Rocket Cos. Class A communal stock, which represents a premium of 63% implicit the measurement weighted mean terms of Redfin’s communal banal for the 30 days ended March 7.

Once finalized, existent Rocket Cos. shareholders volition ain astir 95% of the combined institution connected a afloat diluted basis, portion Redfin shareholders volition ain astir 5%, the companies said.

The companies’ committee of directors person already approved the transaction, though Redfin shareholders inactive person to motion disconnected connected the sale. The companies expect the transaction to adjacent successful the 2nd oregon 3rd 4th this year.