Rocket Companies announced it will acquire Redfin in an all-stock transaction valued at $1.75 billion, with each Redfin share exchanged for 0.7926 shares of Rocket Companies Class A common stock, representing a 63% premium over Redfin's 30-day volume-weighted average price as of March 7, 2025. The acquisition, expected to close by Q3 2025, aims to expand Rocket's purchase mortgage strategy and leverage Redfin’s strategic assets, including its 50 million monthly website visitors, 1 million active listings, and a network of over 2,200 agents across 42 states, as stated by Rocket Companies in a press release.
Redfin CEO Glenn Kelman will continue to lead the Redfin business under Rocket Companies' leadership following the transaction. The deal remains subject to Redfin shareholder approval and other closing conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The transaction is projected to generate over $200 million in run-rate synergies by 2027, with $140 million from cost reductions and $60 million from revenue enhancements through combined service offerings. Rocket Companies expects the deal to boost adjusted earnings per share by the end of 2026. Upon completion, Rocket shareholders will hold 95% of the combined company, while Redfin shareholders will own 5%.
Rocket Companies also announced a special cash dividend of $0.80 per share for Class A common stock, payable on April 3, 2025, to shareholders of record as of March 20, 2025. The company will simplify its corporate structure by merging multiple stock classes into two, enhancing equity liquidity and improving acquisition currency, according to Rocket Companies' statement.
