Rocket Companies snaps up Redfin in $1.75bn all-stock acquisition
Rocket Companies, a financial services and consumer lending firm based in Detroit, US, has agreed to acquire digital real estate brokerage Redfin for $1.75 billion in an all-stock deal.
Rocket Companies aims to complete the deal in Q2/3 2025
The deal values Redfin shares at $12.50 each, with Redfin shareholders receiving 0.7926 shares of Rocket Companies Class A common stock for every Redfin share. The transaction, expected to close in Q2 or Q3 of 2025, will result in Rocket shareholders owning approximately 95% of the combined entity, while Redfin shareholders will hold around 5%.
Launched in 2006, Redfin has grown into a home search platform featuring over 1 million for-sale and rental listings and nearly 50 million monthly visitors. The company employs 4,000 people, including more than 2,200 agents in its tech-driven brokerage.
Through the acquisition, Rocket states it aims to streamline the homebuying experience from “search to close, to servicing and future transactions”, by integrating Redfin’s search platform and real estate agent network with its own mortgage origination and servicing capabilities.
Rocket Companies’ fintech platform consists of mortgage, real estate, and personal finance businesses, namely: Rocket Mortgage, Rocket Homes, Rocket Close, Rocket Money, and Rocket Loans.
Rocket expects that the integration of Redfin will also boost its AI models, enabling the company to leverage consumer insights on homebuyers, sellers, and agents from a combined data repository of 100 million properties. Rocket also anticipates generating “significant revenue synergies across search, real estate brokerage, mortgage origination, title and servicing”.
After the transaction closes, Rocket says that Redfin CEO Glenn Kelman, who has led the company since 2005, is expected to remain in charge of the Redfin enterprise and will report to Rocket CEO Varun Krishna, who took the helm in 2023.
On the two firms’ vision for the future, Kelman says: “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.”
