Redfin Corp (NASDAQ: RDFN) stock soared over 70% in pre-market trading today after Rocket Companies (NYSE: RKT) revealed plans to acquire the digital real estate brokerage in an all-stock deal valued at $1.75 billion.
Under the agreement, Redfin (NASDAQ: RDFN) shareholders will receive 0.7926 shares of Rocket Companies Class A common stock for each Redfin share they own—a swap that delivers a 63% premium over Redfin’s average stock price as of March 7, 2025.
The merger will combine Redfin’s widely used home-search platform with Rocket’s mortgage expertise, aiming to create a seamless experience for homebuyers—from browsing listings to securing financing. Rocket believes the acquisition will expand its customer base, drive growth in its purchase mortgage business, and enhance its AI-driven customer experiences.
“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.”
“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.”
On the financial front, Rocket Companies (NYSE: RKT) sees significant benefits from the deal. The company forecasts more than $200 million in annual run-rate synergies by 2027, with about $140 million coming from cost savings and over $60 million from new revenue opportunities across their combined services. The acquisition is also expected to boost Rocket’s adjusted earnings per share by the end of 2026, adding to its appeal for shareholders.
The transaction has already secured approval from the Boards of Directors of both companies. It’s slated to close in the second or third quarter of 2025, pending a vote from Redfin Corp (NASDAQ: RDFN) shareholders and standard regulatory clearances. Once completed, Kelman will remain at the helm of Redfin, steering its operations within the Rocket Companies umbrella.
