R
ocket Companies is acquiring Redfin, a leading digital real estate brokerage, in an all-stock deal valued at approximately $1.75 billion. The transaction values Redfin's stock at $12.50 per share and is expected to close in the second or third quarter of 2025.

    The acquisition brings together Rocket's mortgage and fintech platforms with Redfin's online brokerage capabilities. Redfin CEO Glen Kelman will continue to lead the company, reporting directly to Rocket Companies CEO Varun Krishna.

    Krishna stated that the combined companies share a vision for improving the homebuying experience through technology. The union will leverage Redfin's 50 million monthly visitors and 2,200 real estate agents in 42 states, as well as its AI capabilities, to drive revenue synergies across search, brokerage, mortgage origination, title, and servicing.

    Rocket expects the combined company to achieve $200 million in savings by 2027, including $140 million in cost efficiencies from consolidating operations. The company also anticipates $60 million in revenue synergies from pairing financing clients with Redfin agents and driving clients to Rocket's mortgage and title divisions.

    Redfin has struggled during the recent housing downturn, laying off employees and losing money in recent quarters. However, Kelman believes that combining forces will simplify the homebuying process for customers, allowing them to quickly determine affordability, schedule tours, and get pre-qualified for a loan through AI-guided technology.