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Rocket Companies announced Monday its plans to acquire Redfin in an all-stock transaction valued at $1.75 billion in equity. The acquisition brings together the “most-visited real estate brokerage” and the “largest mortgage lender.”
The deal has been approved by the Boards of Directors of Rocket Companies and Redfin, and is expected to close in the second or third quarter of 2025. It must still be approved by shareholders and will likely receive scrutiny from federal antitrust regulators.
Until then, Redfin will continue to operate independently, Redfin CEO Glenn Kelman shared in a statement. After the deal is finalized, Redfin will become a subsidiary of Rocket Companies.
This acquisition will integrate Redfin’s home search platform, which features over one million listings and a network of 2,200 agents, with Rocket Companies’ mortgage origination and servicing capabilities. The combination aims to streamline the homebuying process by enhancing transaction efficiency and service quality.
“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” Rocket Companies CEO Varun Krishna said. “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.”
READ INMAN’S INTERVIEW WITH KELMAN AND KRISHNA
Varun Krishna | CEO of Rocket Companies
Rocket projects that the combined company will generate over $200 million in run-rate synergies by 2027. This includes approximately $140 million in cost synergies from duplicative operations and an additional $60 million in revenue synergies from financing clients who work with Redfin agents.
With Redfin attracting 50 million monthly visitors, Rocket anticipates significant revenue growth across home search, real estate brokerage, mortgage origination, title services and loan servicing.
The acquisition is also expected to strengthen Rocket’s AI models. By integrating Redfin’s platform, Rocket’s AI algorithms will gain access to a load of new data.
“Rocket and Redfin’s approaches to lending and brokerage service have always been two halves of one vision to make the whole homebuying process magical,” Kelman said. “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. 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.”
Following the acquisition, Kelman will continue to lead Redfin and report to Krishna, ensuring a smooth transition for the company.
Employee pay is also a focus upon the acquisition.
Employees paid in Redfin stock will receive Rocket stock instead at an exchange ratio of 0.7926 Rocket shares. Rocket is also planning to help loan officers join Rocket using Rocket Lock, a field-based arm of Rocket Mortgage, gain more access to lending products and competitive rates.
“This deal is based on shrewd financial calculations but also on an instinct to go all out on the big thing: making the American Dream more accessible and affordable,” Kelman said. “Once the deal closes, Rocket and Redfin will form a technology company with the national scale of a lender, brokerage, title company and home-search site. Together we’ll be able to do stuff we could’ve only dreamed about before.”
Inman has reached out to Redfin and Rocket Mortgage for comment.
