R
ocket Companies is acquiring Redfin in an all-stock deal valued at $1.75 billion, aiming to boost its lending business through technology and AI-powered connections between buyers and its financing arm. The offer of $12.50 per share represents a 115% premium over Redfin's Friday close, sending shares up about 74%. Rocket's own stock fell around 12% before the market opened.

    Founded in 2004, Redfin operates a home search platform with over 1 million listings and a brokerage of more than 2,200 agents. The combined company will see shareholders of Rocket owning approximately 95%, while Redfin shareholders hold the remaining share on deal completion expected in Q2 or Q3.

    Rocket expects to achieve $200 million in run-rate synergies by 2027 through the acquisition. Redfin's CEO, Glenn Kelman, is set to lead the business following the transaction. Morgan Stanley advised Rocket, while Goldman Sachs worked with Redfin.