Rocket Companies on Monday announced plans to acquire Redfin (RDFN) to expand its mortgage strategy. RKT stock tumbled on the news while Redfin shares soared. Real estate information giant Zillow (Z) retreated.
Rocket Companies (RKT), the firm behind Rocket Mortgage, announced a deal to purchase digital real estate brokerage Redfin in an all-stock transaction for $1.75 billion, or $12.50 per share. The deal represents a 63% premium over the volume weighted average price for RDFN stock for the past 30 days ending March 7.
Rocket plans to combine Redfin’s home search and real estate agent network with its mortgage and servicing capabilities to create “a more seamless experience from search to close.”
“Rocket and Redfin’s approaches to lending and brokerage service have always been two halves of one vision to make the whole home-buying process magical,” Redfin CEO Glenn Kelman said in the release.
Redfin should help drive business as the company generates nearly 50 million monthly visitors. It has one million active purchase and rental listings with a staff of over 2,200 real estate agents across 42 states.
Rocket said the acquisition will continue to boost its market share. The company in 2024 saw an 8% increase in its purchase market share.
The companies also expects the deal to strengthen Rocket’s AI models, to enable more personalized and automated consumer experiences. They have more than 14 petabytes of data combined, with consumer insights and information about homebuyers, sellers and agents across a dataset with more than 100 million properties.
Rocket expects the combined company will achieve more than $200 million in run-rate synergies by 2027. The deal should also grow Rocket’s adjusted earnings per share by the end of 2026. In addition, Rocket expects more than $60 million in revenue synergies, from combining its financing agents with Redfin real estate agents and by driving Redfin clients to its financing services.
The companies expect the deal to close in the second or third quarter of 2025, subject to Redfin shareholder approval and customary closing conditions. Once the acquisition closes, Rocket shareholders will own 95% of the combined company. Redfin shareholders will own about 5%.
Redfin CEO Kelman is expected to lead the Redfin business and report to Rocket CEO Varun Krishna.
KT stock fell 5% after the open Monday to drop back below its 200-day line. Rocket jumped 6.2% Friday to reclaim that moving average.
RKT stock was up 40% this year through Friday.
Redfin shares vaulted 78% early Monday. RDFN stock bolted back above its 200-day line, to its highest level since December.
Redfin stock was down 26% in 2025 through Friday.
Zillow stock sank 4%. Shares are up 2% in 2025 through Friday, but below their 50-day line.
