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 Firms, 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 dwelling search companies and financing, bringing all the things collectively beneath 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 mentioned in a assertion. “We would like a buyer to have the ability to verify her telephone to search out out what she will afford, see which houses are good for her, schedule a tour with a neighborhood, skilled 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 usually traded flat at round $20 within the subsequent few years. However as with many tech firms, Redfin soared through 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% previously couple of weeks, after its This autumn 2024 earnings missed estimates, whereas the corporate additionally offered weak steering for the present quarter.
Rocket Firms, for its half, went public in 2020, and immediately 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 supply entails exchanging 0.7926 shares of Rocket Firms’ Class A inventory for every share of Redfin frequent inventory, with Rocket Firms shareholders proudly owning 95% of the brand new mixed entity and Redfin shareholders proudly owning 5%.
Whereas each boards of administrators have already accredited 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 Firms.