Rocket To Acquire Redfin
Rocket Companies is acquiring digital real estate brokerage Redfin in an all-stock transaction for a value of $12.50 per Redfin share, or $1.75 billion of equity value.
The move will connect Redfin’s nearly 50 million monthly visitors to Rocket’s mortgage products, with the aim of introducing more customers to the Rocket ecosystem and driving growth.
According to a press release, Rocket expects the combined company to achieve more than $200 million in run-rate synergies by 2027, including approximately $140 million in cost synergies from rationalizing duplicative operations and other costs.
In addition, Rocket expects more than $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.
The transaction is expected to be accretive to Rocket Companies’ adjusted earnings per share by the end of 2026, according to the press release.
“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” Varun Krishna, CEO of Rocket Companies said in a statement. “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 CEO Glenn Kelman said they want a customer to be able to check their phone to find out what they can afford, see which homes are just right for them, schedule a tour with a local Redfin agent, and get pre-qualified for a loan 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,” he said.
The deal is expected to close in the second or third quarter of this year, according to the press release.
Founded in 2004, Redfin operates a top-three home search platform with more than 1 million for-sale and rental listings and a brokerage of more than 2,200 agents.
Krishna told Bloomberg that the benefits of more data for Rocket’s AI models, which the company has invested heavily in over the last few years, can help drive genuine mortgage transactions.
“Models from Redfin can augment models from Rocket and help us understand how and when a consumer is in a good place where their intent and their seriousness to buy a home increases,” he said in an interview.
In 2024, net revenue for Rocket Companies came in at $5.1 billion. Adjusted revenue was $4.9 billion.