Rocket Companies to purchase real estate brokerage Redfin
Rocket Companies, a Detroit-based fintech business focusing on mortgage, real estate and personal finance, has announced its plan to acquire real estate brokerage Redfin.
The move connects Redfin's nearly 50 million monthly website visitors to Rocket's mortgage products. The all-stock transaction is based on a value of $12.50 per Redfin share or $1.75 billion of equity value. A conference call and press release to announce the deal took place Monday.
"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."
Redfin, founded in 2004, is one of America's most recognized real estate brands with more than 2,200 agents. Rocket provides home financing in all or parts of all 50 states. The technology and combined consumer data are expected to help Rocket's AI models provide a more personalized and automated consumer experience, the announcement said.
"By 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 close, to servicing and future transactions," the announcement said.
The transaction has been approved by directors of both Rocket Companies and Redfin. It is expected to close in the second or third quarter of 2025, subject to approval by Redfin shareholders and other closing conditions.
Upon closing, it is expected that Redfin CEO Glenn Kelman will continue to lead Redfin, reporting to Rocket Companies' CEO.
