Rocket Wants $1.75 Billion Redfin Deal To Change How America Buys Homes

Fintech firm Rocket Companies (NYSE:RKT) agreed to acquire Redfin Corp. (NASDAQ:RDFN), a digital real estate platform, in an all-stock transaction valued at $12.50 per share, or approximately $1.75 billion in equity.

Under the terms of the agreement, Redfin shareholders will receive 0.7926 shares of Rocket Class A common stock for each Redfin share—a 63% premium over Redfin's 30-day volume-weighted average price. Rocket shareholders will own approximately 95% of the combined company upon completion, with Redfin shareholders holding the remaining 5%.

"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," said Glenn Kelman, CEO of Redfin. "We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan—all in a matter of minutes."

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Redfin boasts 50 million monthly visitors, and one million active listings.

Detroit-based Rocket expects the deal to accelerate its purchase mortgage growth by integrating real estate search, brokerage, financing, title, and servicing—building on an 8% year-over-year increase in its 2024 purchase market share.

With a combined 14 petabytes of data spanning 100 million properties, the company plans to enhance its AI capabilities to deliver more personalized, seamless, and automated consumer experiences.

Financially, the transaction is projected to generate over $200 million in annual run-rate synergies by 2027, including $140 million in cost reductions and $60 million in new revenue opportunities. The deal is expected to be accretive to Rocket's adjusted earnings per share by the end of 2026.

The deal is expected to close in mid-to-late 2025, pending shareholder and regulatory approval. Kelman will continue to lead Redfin, reporting to Rocket CEO Varun Krishna.

Additionally, Rocket announced that it would eliminate its complex "Up-C" and high-vote/low-vote structure, reducing four classes of stock to two and enhancing transparency and flexibility for future acquisitions. Gilbert and other Rock Holdings shareholders will hold standard one-vote-per-share common stock directly in Rocket, replacing their current 10-vote shares.

Special Dividend: Rocket declared a one-time cash dividend of $0.80 per Class A share, payable April 3, 2025, to shareholders of record as of March 20.

Price Action: Rocket shares are trading lower by 10.84% at $14.06 and RDFN higher by 76.12% at $10.25 premarket on Monday’s last check.

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