Rocket Cos. has agreed to buy Redfin Corp. in a deal that valued the real estate listing site at $1.75 billion, according to a statement reviewed by Bloomberg News.

Redfin shares soared 69.1% in premarket trading.

The Detroit-based financial technology group will pay $12.50 for every Redfin share in an all-stock transaction. The price represents a premium of 63% over the volume weighted average price of Redfin’s common stock for the 30 days through Friday, the company said in the statement.

Shares in Redfin closed at $5.82 on Friday, giving the Seattle-based company a market value of about $736 million. Rocket has a market capitalization of about $31.5 billion.

The transaction is expected to close in the second or third quarter of this year. Redfin Chief Executive Officer Glenn Kelman is anticipated to continue to lead the business, reporting to Rocket’s CEO Varun Krishna.

Redfin operates a home search platform with more than one million for-sale and rental listings and an tech-powered brokerage of more than 2,200 agents.

Rocket’s stable includes mortgage, real estate and personal finance businesses. The company expects to achieve more than $200 million in run-rate synergies by 2027 through the purchase of Redfin, according to the statement.

The company has said it’s betting on technology, specifically artificial intelligence, to fuel a rebound after a drop-off in mortgage origination.

Morgan Stanley is advising Rocket on the deal and Goldman Sachs Group Inc. is working with Redfin.