Rocket acquires Redfin for $1.75 billion, taking over the premium domain name Redfin.com
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Recently, financial technology company Rocket Companies announced that it would acquire well-known real estate brokerage Redfin in an all-stock transaction of US$1.75 billion, which has attracted widespread attention in the real estate and financial fields. The acquisition is expected to be completed in the second or third quarter of 2025, when Redfin's iconic domain name Redfin.com will also belong to Rocket Companies.
According to the acquisition agreement, Rocket will acquire Redfin for US$12.50 per share, valuing it at US$1.75 billion, a 75% premium to Redfin's closing price last Friday. In pre-market trading in New York, Redfin's stock price jumped from Friday's closing price of US$5.82 per share to as high as US$10.80 per share.
Founded in 2004, Redfin is a leading real estate brokerage website with nearly 50 million visits per month, 1 million active listings for sale and rent, and more than 2,200 real estate agents in 42 states. After acquiring Redfin, Rocket will benefit from its huge user traffic and extensive business network.
Rocket CEO Varun Krishna said: "Rocket and Redfin have a consistent vision for how to optimize the home buying and selling process. By connecting the traditionally disconnected steps in the search and financing process through leading technology, we will improve the home buying experience for American homebuyers, reduce transaction costs, and increase value." Redfin CEO Glenn Kelman also said that the combination of the two companies will make the entire home buying process smoother and more beautiful.
The acquisition is expected to generate synergies in many aspects. By 2027, the merged company is expected to achieve more than $200 million in annualized synergies, of which approximately $140 million will come from cost reductions and $60 million will be generated by integrating financing services and real estate brokerage businesses. In addition, Rocket expects to further increase revenue by pairing its financing customers with Redfin's real estate agents and guiding Redfin customers to use Rocket's mortgage and after-sales services. Once the deal is completed, Rocket shareholders will own 95% of the combined company and Redfin shareholders will own 5%.
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