Rocket Companies (RKT) said Monday it has entered into an agreement to acquire Redfin (RDFN) in an all-stock transaction for $12.50 per share for an equity value of $1.75 billion.
Under terms of the agreement, each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket class A common stock. Rocket said the transaction is expected to be accretive to its adjusted earnings per share by the end of 2026.
The transaction has been approved by the boards of both companies, and is expected to close in Q2 or Q3, subject to Redfin shareholders' approval and other closing conditions. Redfin CEO Glenn Kelman will continue to lead Redfin's business, reporting to Rocket Companies' CEO Varun Krishna, the two companies said.
When the transaction is completed, Rocket said its shareholders will own approximately 95% of the combined company on a fully diluted basis, while Redfin shareholders will own approximately 5%.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.