The news of an acquisition deal caused Redfin Corporation’s (NASDAQ: RDFN) stock price to soar. As of the most recent pre-market check, Redfin stock has increased 70.10% to $9.90.
Expanding Through Strategic Acquisition
As per the deal, Redfin would be acquired by Rocket Companies, a Detroit-based fintech behemoth. It is an all-stock deal of around $1.75 billion, at a price of $12.50 per share. Through the integration of RDFN’s vast platform, which has over 1 million active listings and draws close to 50 million monthly visitors, Rocket’s footprint in the mortgage and real estate sectors will be greatly increased by this purchase.
Redfin also ranks in the top 1% of brokerages worldwide, with a network of over 2,200 real estate professionals spread throughout 42 states. Rocket wants to improve its mortgage origination, title, and loan servicing service offerings by taking use of RDFN’s well-established market position.
Improved Data Capabilities
With the integration of Redfin’s vast consumer data repository, which includes insights on over 100 million properties, Rocket Companies will gain access to more than 14 petabytes of data. This substantial increase in data volume will bolster Rocket’s artificial intelligence models, facilitating more personalized, automated, and efficient consumer interactions.
Rocket projects that the merger will generate over $60 million in revenue synergies, stemming from cross-selling opportunities between RDFN’s agents and Rocket’s mortgage and financial services.
Deal Structure and Closing Timeline
Each common stockholder of Redfin will receive 0.7926 shares of Class A common stock of Rocket Companies as part of the transaction. As of March 7, 2025, the company’s 30-day volume-weighted average pricing (VWAP) was 63% lower than this exchange. Current Rocket Companies shareholders will own around 95% of the merged company when the deal is completed, with Redfin stockholders keeping 5%.
The transaction is anticipated to be completed in the second or third quarter of 2025 after being approved by the boards of directors of both businesses. The RDFN CEO will continue to oversee the real estate segment after the merger, which will be run by the CEO of Rocket Companies.