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 Corporations, a Detroit, Michigan-based finance and actual property holding agency that operates numerous manufacturers together with Rocket Mortgage, Rocket Cash (previously Truebill), and Rocket Loans.
The brand new mixed entity primarily swimming pools the 2 firms’ respective strengths in house search companies and financing, bringing the whole lot collectively below 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 stated in a assertion. “We would like a buyer to have the ability to examine her cellphone to search out out what she will be able to afford, see which houses are excellent for her, schedule a tour with an area, professional Redfin agent, and get pre-qualified for a mortgage, all in a matter of minutes.”
Based 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. However as with many tech firms, Redfin soared throughout the pandemic, with its inventory hitting an all-time excessive of $96 in early 2021, earlier than plummeting to beneath $10 for a lot of the previous three years.
Redfin’s shares had slipped greater than 30% up to now couple of weeks, after its This fall 2024 earnings missed estimates, whereas the corporate additionally supplied weak steerage for the present quarter.
Rocket Corporations, for its half, went public in 2020, and right this moment has a market cap of $31 billion. The corporate’s proposed bid of $12.50 per share represents a 63% premium over Redfin’s quantity weighted common value (VWAP) for the month main as much as March 7, 2025. The provide entails exchanging 0.7926 shares of Rocket Corporations’ Class A inventory for every share of Redfin widespread inventory, with Rocket Corporations shareholders proudly owning 95% of the brand new mixed entity and Redfin shareholders proudly owning 5%.
Whereas each boards of administrators have already accepted 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 text was up to date to make clear that Redfin will stay a public firm as a part of Rocket Corporations.