Detroit-based fintech platform Rocket Companies (NYSE: RKT) has reached an agreement to acquire the Seattle mortgage services company Redfin (NASDAQ: RDFN) in an all-stock transaction valued at $1.75 billion, the companies announced on Monday.
Each Redfin share will be exchanged for 0.7926 shares of Rocket’s Class A common stock, with the deal expected to close in mid-2025, pending shareholder and regulatory approvals.
Following the announcement, Redfin’s stock soared nearly 70%, reaching $9.91 in premarket trading. This surge came after Rocket Companies agreed to acquire Redfin for $12.50 per share, representing a premium of 63% over Redfin’s recent average price.
On the other hand, Rocket’s stock dropped around 13%.
Forming a real estate-lending powerhouse
The acquisition brings together two major players in real estate and mortgage lending. Redfin, founded in 2004, operates one of the nation’s most visited real estate platforms, with nearly 50 million monthly users and a network of over 2,200 agents.
Rocket Companies, known for its mortgage and financial services, views the deal as a step toward streamlining the home-buying process.
“Rocket and Redfin share a unified vision of a better way to buy and sell homes,” said Rocket CEO Varun Krishna. “Together, we will enhance the experience by connecting traditionally separate steps of the search and financing process with leading technology.”
The acquisition is expected to drive Rocket’s mortgage growth, giving Redfin users direct access to Rocket’s financing products. Rocket anticipates over $200 million in synergies by 2027, including cost savings and new revenue opportunities.
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