R
ocket Companies, a Detroit-based fintech platform, has entered into an agreement to purchase Redfin, a leading digital real estate brokerage, in an all-stock transaction valued at $1.75 billion. The deal brings together two companies with a shared vision of improving the home-buying experience through technology.

    Redfin's nearly 50 million monthly visitors will be connected to Rocket's mortgage products, expanding its reach and driving growth. The combined company is expected to achieve significant synergies, including over $200 million in run-rate synergies by 2027, with approximately $140 million in cost synergies and $60 million in revenue synergies.

    Rocket Companies' CEO Varun Krishna stated that the acquisition will improve the experience for homebuyers by connecting traditionally disparate steps of the search and financing process. Redfin's CEO Glenn Kelman added that the companies share a vision to make the home-buying process magical, with AI guiding customers through every step.

    The transaction is expected to close in the second or third quarter of 2025, subject to approval by Redfin shareholders and satisfaction of other closing conditions. Upon completion, current Rocket Companies shareholders will own approximately 95% of the combined company, while Redfin shareholders will own around 5%.

    Rocket Companies also announced that it will collapse its "Up-C" structure, eliminate its high-vote/low-vote structure, and reduce its classes of common stock from four to two. The company will declare a special cash dividend of $0.80 per share of Class A common stock to be paid on April 3.

    The acquisition is expected to be accretive to Rocket Companies' adjusted earnings per share by the end of 2026, with the combined company maintaining its strong balance sheet and conservative leverage profile.