Rocket Companies said on Monday it would acquire real estate listing platform Redfin in an all-stock deal valued at $1.75 billion, seeking to boost its lending business.
Rocket’s $12.50 per share offer equates to a near 115% premium to Redfin’s Friday close. Redfin’s shares rose about 80%, while Rocket’s fell about 8% before the bell.
Founded in 2004, Redfin operates a home search platform with more than 1 million for-sale and rental listings and a tech-powered brokerage of more than 2,200 agents.
Rocket, whose flagship business is its mortgage-lending arm, aims to lean on technology and AI to help link prospective buyers with its financing arm and speed up deals once the transaction closes, the company said.
The deal is expected to close in the second or third quarter, Detroit-based fintech Rocket said.
It expects the combined company to achieve more than $200 million in run-rate synergies by 2027.
Redfin’s CEO Glenn Kelman will continue to lead the business.
Source Homevior.in
