Rocket Companies to Buy Redfin in $1.75B Deal
Rocket Companies, known for Rocket Mortgage and Rocket Loans, has agreed to purchase Redfin, a digital real estate brokerage, in an all-stock deal valued at $1.75 billion. The acquisition aims to integrate Redfin’s extensive home search platform and agent network with Rocket’s mortgage and financing services, potentially streamlining the home-buying process.
Redfin shareholders will receive 0.7926 shares of Rocket Class A common stock for each Redfin share they own. Priced at $12.50 per Redfin share, the deal offers a 63% premium over Redfin’s 30-day volume-weighted average price (VWAP) ending March 7, 2025.
“Rocket and Redfin’s approaches to lending and brokerage service have always been two halves of one vision to make the whole home-buying process magical,” Redfin CEO Glenn Kelman said.
Redfin brings nearly 50 million monthly visitors to its platform. With one million active purchase and rental listings and a workforce of over 2,200 real estate agents spanning 42 states, Redfin offers Rocket a robust network to drive mortgage and loan originations.
Seattle-based Rocket said the acquisition will continue to lift its market share. The company saw an 8% increase in its purchase market share in 2024. Both companies say the deal will supercharge Rocket’s AI models, aiming for more personalized and automated consumer experiences.
Rocket projects the combined entity will hit over $200 million in run-rate synergies by 2027. In addition, they expect adjusted earnings per share to grow by the end of 2026, signaling confidence in near-term profitability boosts. The company also anticipates over $60 million in revenue synergies by marrying its financing agents with Redfin’s real estate agents and steering Redfin’s visitors toward Rocket’s mortgage and loan services.
Post-close, Rocket shareholders will own 95% of the combined company, leaving Redfin shareholders with about 5%. Redfin’s Kelman, will stay on to lead the Redfin business, reporting to Rocket CEO Varun Krishna,
Morgan Stanley & Co. LLC is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel to Rocket Companies. Goldman Sachs & Co LLC is acting as financial advisor and Fenwick & West LLP is acting as legal counsel to Redfin.