Rocket Cos. Acquires Redfin in $1.75 Billion All-Stock Deal
Rocket Cos. is set to acquire Redfin for $1.75 billion, enhancing its presence in the real estate sector with a vast network of agents.
Overview
Rocket Cos. has announced the acquisition of Redfin in an all-stock transaction valued at $1.75 billion. This deal will expand Rocket's offerings with Redfin's extensive real estate platform and agent network, aiming to save costs and boost revenue. Each Redfin share is valued at $12.50, equating to a significant premium over recent trading prices. Once completed, Rocket shareholders will own approximately 95% of the new entity. Redfin's CEO will continue to lead the brokerage following the merger, expected to finalize in Q2 or Q3 of this year.
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Analysis
- Rocket Cos. is acquiring Redfin to expand its services and improve efficiency in the real estate market.
- The deal is valued at $1.75 billion, which includes a significant premium for Redfin shareholders, highlighting the growth potential of the combined entities.
- The acquisition is expected to lead to operational synergies and increased revenues by connecting clients with additional real estate services.
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The acquisition is an all-stock deal where each Redfin share is exchanged for 0.7926 shares of Rocket Companies' Class A stock, valuing Redfin at $1.75 billion.
Redfin will continue to operate under its current leadership, with CEO Glenn Kelman remaining at the helm and reporting to Rocket's CEO. The acquisition aims to enhance Redfin's services by integrating Rocket's financial capabilities.
Rocket Cos. anticipates saving $140 million in costs by eliminating duplicative operations and boosting revenue by more than $60 million through integrated services.
The acquisition is expected to close in the second or third quarter of 2025, pending approval from Redfin's shareholders.
History
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