Rocket Companies to Acquire Redfin in $1.75 Billion Deal

DETROIT and SEATTLE, March 10, 2025 /PRNewswire/ — Rocket Companies (NYSE: RKT), a leading fintech platform based in Detroit, announced today that it has reached an agreement to acquire Redfin (NASDAQ: RDFN), a prominent digital real estate brokerage. The all-stock transaction values Redfin at $12.50 per share, totaling approximately $1.75 billion in equity.

Founded in 2004, Redfin operates one of the nation’s top three home search platforms with over a million listings, while employing more than 2,200 agents. Varun Krishna, CEO of Rocket Companies, expressed enthusiasm for the merger, stating, “Rocket and Redfin have a unified vision of a better way to buy and sell homes. Together, we will enhance the customer experience by integrating the traditionally separate phases of searching and financing with advanced technology that alleviates friction, cuts costs, and adds value for American homebuyers.”

For the past 40 years, Rocket Companies has positioned itself as a leader in digital home financing, providing services across all 50 states. With this acquisition, the company aims to combine its mortgage origination and servicing capabilities with Redfin’s extensive brokerage network, creating a streamlined experience from property search to transaction closure.

Glenn Kelman, CEO of Redfin, also shared optimism about the acquisition, commenting, “Rocket and Redfin’s methods of lending and brokerage have always complemented each other. We aim to enable customers to quickly assess their purchasing power, discover suitable homes, schedule tours, and get pre-qualified for loans—all within minutes.”

Under the terms of the deal, Redfin shareholders will receive 0.7926 shares of Rocket Companies Class A common stock for each Redfin share they own, representing a 63% premium based on Redfin’s average stock price over the past 30 days. Following the transaction, Rocket shareholders will control approximately 95% of the combined entity, with Redfin shareholders owning the remaining 5%.

Approval from Redfin shareholders and completion of necessary closing conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, are prerequisites for finalizing the agreement. The transaction has already received the green light from the Boards of Directors of both companies and is expected to close in the second or third quarter of 2025.

In addition to the acquisition, Rocket Companies announced modifications to its corporate structure to streamline operations. The company intends to eliminate its “Up-C” framework, reducing its classes of common stock from four to two and simplifying its organizational profile.

Dan Gilbert and other stockholders of Rock Holdings Inc. will begin holding shares directly in Rocket Companies, with voting rights adjusted to one vote per share, replacing the current 10 votes per share associated with the Class D common stock.

Effective April 3, 2025, Rocket’s board also declared a cash dividend of $0.80 per share for Class A common stockholders. This change is intended to enhance liquidity and facilitate the use of common stock as acquisition currency, further supporting the integration of Redfin.

A conference call is scheduled for today at 8:00 a.m. ET for Rocket Companies to discuss the acquisition, which will also be available via live webcast on the company’s investor relations website. A recording of the event will be accessible for all stakeholders after the live session concludes.

Investors and securityholders of both Rocket and Redfin are encouraged to review the upcoming Registration Statement and Proxy Statement/Prospectus that will be filed with the Securities and Exchange Commission as they will contain critical details about the transaction.