Redfin is being acquired in an all-stock transaction that values the true property itemizing platform at $1.75 billion.
The buying firm is Rocket Companies, a Detroit, Michigan-based finance and actual property holding agency that operates numerous manufacturers together with Rocket Mortgage, Rocket Money (previously Truebill), and Rocket Loans.
The new mixed entity primarily swimming pools the 2 corporations’ respective strengths in dwelling search providers and financing, bringing every thing collectively underneath one digital roof.
“Rocket and Redfin’s approaches to lending and brokerage service have at all times been two halves of 1 imaginative and prescient to make the entire home-buying course of magical,” Redfin CEO Glenn Kelman mentioned in a press release. “We need a buyer to have the ability to examine her telephone to search out out what she will be able to afford, see which properties are good for her, schedule a tour with an area, professional Redfin agent, and get pre-qualified for a mortgage, all in a matter of minutes.”
Founded out of Seattle in 2004, Redfin serves a residential actual property brokerage platform for the U.S. and Canadian markets. The self-proclaimed “Amazon of actual property” went public in 2017, and its shares typically traded flat at round $20 within the subsequent few years. But as with many tech corporations, Redfin soared throughout the pandemic, with its inventory hitting an all-time excessive of $96 in early 2021, earlier than plummeting to under $10 for a lot of the previous three years.
Redfin’s shares had slipped greater than 30% prior to now couple of weeks, after its This fall 2024 earnings missed estimates, whereas the corporate additionally supplied weak steering for the present quarter.
Rocket Companies, for its half, went public in 2020, and immediately has a market cap of $31 billion. The firm’s proposed bid of $12.50 per share represents a 63% premium over Redfin’s quantity weighted common worth (VWAP) for the month main as much as March 7, 2025. The provide entails exchanging 0.7926 shares of Rocket Companies’ Class A inventory for every share of Redfin frequent inventory, with Rocket Companies shareholders proudly owning 95% of the brand new mixed entity and Redfin shareholders proudly owning 5%.
While each boards of administrators have already authorized the transaction, it does nonetheless require Redfin’s shareholders to rubberstamp the deal, which Redfin says it expects to occur in Q3, 2025. Kelman, who has led the corporate since 2005, will proceed on the helm of Redfin, reporting on to Krishna.
This article was up to date to make clear that Redfin will stay a public firm as a part of Rocket Companies.
