HousingWireHousingWire
Today, Rocket Companies announced it has entered into an agreement to purchase digital real estate brokerage Redfin in an all-stock transaction valued at $1.75 billion in equity.
The deal, which has been approved by the boards of directors of both Rocket Companies and Redfin, is expected to close in the second or third quarter of 2025.
Rocket’s press release stated that Redfin CEO Glenn Kelman will continue to lead the Redfin business, reporting to Rocket Companies’ CEO Varun Krishna.
“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” said Varun Krishna, CEO of Rocket Companies. “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.”
The transaction will merge Redfin’s home search platform, which is comprised of 50 million monthly visitors, 1 million active purchase and rental listings and its network of over 2,200 agents, with Rocket’s mortgage services, with the goal of delivering “a more seamless experience from search to close, to servicing and future transactions.”
“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. 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.”
The deal is also poised to drive Rocket’s purchase mortgage growth, with the expectation that “the transaction will generate significant revenue synergies across search, real estate brokerage, mortgage origination, title and servicing.”
Rocket expects the merger to generate over $200 million in run-rate synergies by 2027, including $140 million in cost savings from streamlining operations and $60 million in revenue gains by connecting financing clients with Redfin agents. The deal is projected to boost Rocket’s adjusted earnings per share by late 2026.
Under the agreement, each Redfin share will convert to 0.7926 Rocket Class A shares, a 63% premium over Redfin’s 30-day Volume-Weighted Average Price (VWAp) as of March 7, 2025.
Post-merger, Rocket shareholders will own 95% of the combined company on a fully diluted basis, with Redfin shareholders holding 5%.
