Rocket Companies announced Monday it is acquiring real estate brokerage Redfin for $1.75 billion as part of a push to expand its presence in the purchase market.
Rocket will pay $12.50 a share for the online brokerage in an all-stock transaction, which is expected to close in the second or third quarter of 2025, it said.
Redfin CEO Glenn Kelman, who has led the brokerage since 2005, will continue in his role while also reporting to Rocket CEO Varun Krishna.
Founded in 2004, the real estate brokerage website has nearly 50 million monthly visitors, one million for-sale and rental listings and a staff of 2,200 real estate agents across 42 states, a press release added.
The transaction is expected to add notable traffic to Rocket’s offerings and buoy its purchase originations. While Rocket has historically dominated the refinance market, it has made recent moves, including this acquisition, to reframe its business.
The Detroit-based lender estimates the merger will generate more than $200 million in run-rate synergies by 2027. After fully integrating Redfin into its network, Rocket expects to generate over $60 million in revenue by combining its financing services with Redfin’s real estate business. It also expects $140 million in cost synergies from eliminating duplicate operations.
Rocket’s CEO noted both companies have “a unified vision” of how to streamline the homebuying process.
“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,” Krishna said.
Redfin’s Kelman, echoed similar sentiments, dubbing Rocket’s and his company’s approach as “two halves of one vision to make the whole home-buying process magical.”
“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,” Redfin’s CEO said. “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.”
Morgan Stanley & Co. LLC is advising Rocket Companies on the acquisition, while Goldman Sachs & Co. LLC is advising Redfin.
Rocket continues to trail the No. 1 company in volume, United Wholesale Mortgage, which had fourth quarter originations of $38.7 billion, compared to Rocket’s $27.8 billion, according to filings with the Securities and Exchange Commission.
