Rocket Companies, a Detroit-based fintech platform consisting of mortgage, real estate, and personal finance businesses, announced today that it has agreed to purchase Redfin, a leading digital real estate brokerage, in an all-stock transaction for $12.50 per Redfin share, or $1.75 billion of equity value.
Launched in 2004, Redfin is one of America’s most recognized real estate brands. It operates a top-three home search platform with over 1 million for-sale and rental listings and a tech-powered brokerage of over 2,200 agents.
For 40 years, Rocket’s digital platform has grown to provide home financing in all 50 states across 3,000+ counties and parishes. Combining Redfin’s home search and real estate agent network with Rocket’s mortgage origination and servicing capabilities, the company envisions a more seamless experience from search to closing, servicing, and future transactions.
Combining Rocket Companies and Redfin is expected to:
1.) Introduce more consumers to the Rocket ecosystem – Rocket Companies will benefit from Redfin’s nearly 50 million monthly visitors, 1 million active purchase and rental listings and staff of 2,200+ real estate agents across 42 states – with Redfin agents ranking in the top 1% of agents working at any nationwide brokerage.
2.) Drive Rocket’s purchase mortgage growth—The deal will generate significant revenue synergies across search, real estate brokerage, mortgage origination, title, and servicing. Rocket will match homebuyers with the best real estate agents and loan officers across the combined companies. In 2024, Rocket saw an 8% year-over-year increase in purchase market share and aims to accelerate growth through this acquisition further.
3.) AI, technology, and personalization at scale—With over 14 petabytes of combined data, Rocket gains unparalleled consumer insights, including information about homebuyers, sellers, and agents across a data repository of 100 million properties. This data will strengthen Rocket’s AI models, enabling easier, more personalized, and automated consumer experiences.
4.) Achieve significant synergies and earnings accretion—Rocket believes the combined company will achieve more than $200 million in run-rate synergies by 2027, including approximately $140 million in cost synergies from the rationalization of duplicative operations and other costs. Rocket expects over $60 million in revenue synergies from pairing the company’s financing clients with Redfin real estate agents and from driving clients working with Redfin agents to Rocket’s mortgage, title, and servicing offerings.
Under the terms of the agreement, each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket Companies Class A common stock, which represents a premium of 63% over the volume weighted average price (VWAP) of Redfin’s common stock for the 30 days ending March 7, 2025. Upon completion of the transaction, current Rocket Companies shareholders will own approximately 95% of the combined company on a fully diluted basis, while Redfin shareholders will own approximately 5%.
The deal has been approved by the Boards of Directors of Rocket Companies and Redfin. It is expected to close in the second or third quarter of 2025, subject to approval by Redfin shareholders and the satisfaction of other closing conditions.
Upon the deal’s closing, Redfin CEO Glenn Kelman is expected to continue leading the Redfin business, reporting to Rocket Companies’ CEO Varun Krishna.
Morgan Stanley is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal counsel to Rocket Companies. And Goldman Sachs is acting as financial advisor and Fenwick & West is acting as legal counsel to Redfin.
KEY QUOTES:
“Rocket and Redfin have a unified vision of a better way to buy and sell homes. Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers.”
- Varun Krishna, CEO of Rocket Companies
“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. 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. Varun and I see how much better real estate could be when AI guides customers not just through that first step in their search, but all the way home, through the sale, the loan and then a lifetime of accumulating equity and wealth.”
- Glenn Kelman, CEO of Redfin
