R
ocket Companies, a Detroit-based firm, is acquiring Redfin, a leading real estate listing platform, in an all-stock deal valued at $1.75 billion. The acquisition is expected to close within six months and will combine one of the country's largest mortgage lenders with one of its top home search platforms.

    Redfin, founded in 2004, boasts over 1 million listings and attracts nearly 50 million monthly visitors. The company also has a brokerage of more than 2,200 agents. Rocket Companies' CEO Varun Krishna said the deal will enable the companies to link traditionally disparate steps of the search and financing process using technology.

    The joint vision is for an all-in-one home buying experience, from search to close, with features like instant pre-qualification and personalized recommendations. Redfin's CEO Glenn Kelman noted that customers could potentially book a tour with a Redfin agent and get pre-qualified for a loan in just minutes.

    Artificial intelligence will also play a key role in the deal, as Rocket gains access to data on homebuyers, sellers, and agents through Redfin's platform. This data can enhance Rocket's AI models, leading to more personalized and automated home buying experiences.

    The acquisition is expected to generate around $140 million in cost savings for Rocket, primarily from eliminating duplicative operations. The deal also presents revenue opportunities by pairing Rocket's financing clients with Redfin real estate agents and vice versa.

    Redfin shareholders will need to approve the deal, which has been cleared by both companies' boards of directors. The acquisition is subject to regulatory approval and is expected to close in the second or third quarter.