Rocket To Buy Redfin For $1.75 Billion: "Accelerating Purchase Mortgage Strategy"

Rocket Companies, a fintech firm, has agreed to acquire Redfin Corp, a real estate services company, in an all-stock deal valued at $1.75 billion. The deal represents a 75% premium over Redfin's closing price on Friday. Rocket CEO Varun Krishna stated that the acquisition will improve the homebuying experience by connecting search and financing processes with leading technology. Redfin CEO Glenn Kelman shared a similar vision, aiming to make the homebuying process "magical" with AI-guided customer experiences. The acquisition will introduce more consumers to Rocket's ecosystem, drive purchase mortgage growth, and leverage AI and technology for personalized experiences. Rocket expects significant synergies and earnings accretion, with over $200 million in run-rate synergies by 2027. The deal is expected to be accretive to Rocket's adjusted earnings per share by the end of 2026. The housing market is currently slow, with high mortgage rates and home prices, but rate traders are pricing in interest rate cuts by the end of the year. The acquisition will give Rocket a top real estate listing platform and further integrate its services for homebuyers.