Rocket Companies is acquiring Redfin, a top digital real estate brokerage, in an all-stock transaction worth an estimated $1.75 billion. Rocket is valuing Redfin’s stock at $12.50 per share. The deal is expected to close in the second or third quarter of 2025.
The acquisition combines one of the pioneering online real estate brokerages with Rocket’s expansive mortgage and real estate fintech platforms. Redfin CEO Glen Kelman will continue to lead Redfin and will report to Rocket Companies CEO Varun Krishna.
“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” Krishna said in a statement. “Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers.”
The combination will give Rocket access to Redfin’s nearly 50 million monthly visitors, 1 million active purchase and rental listings and a staff of more than 2,200 real estate agents in 42 states. The union is also expected to bring the latest technological advances, including artificial intelligence (AI), to customers and generate revenue synergies across search, real estate brokerage, mortgage origination, title and servicing.
Rocket expects the combined company to achieve more than $200 million in savings by 2027, including approximately $140 million in cost efficiencies by consolidating duplicate operations and other costs. Rocket also expects $60 million in revenue synergies from pairing the company’s financing clients with Redfin real estate agents, and from driving clients working with Redfin agents to Rocket’s mortgage, title and servicing divisions.
One of the first digital real estate brokerages, Redfin was founded in Seattle in 2004 and has grown to have operations in 42 states. But the company has struggled during the recent downturn in the housing industry, laying off employees and losing money in recent quarters.
Redfin laid off 450 employees, or about 10% of its workforce, last month as part of a deal in which the brokerage allowed long-time rival Zillow to take over its multifamily rental listings for $100 million.
Redfin’s Kelman said combining the two companies will help make the homebuying experience easier for customers.
“We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent and get pre-qualified for a loan, all in a matter of minutes,” Kelman said in a statement. “Varun and I see how much better real estate could be when AI guides customers not just through that first step in their search, but all the way home, through the sale, the loan and then a lifetime of accumulating equity and wealth.”
