MW Mortgage lender Rocket is acquiring Redfin to combine home buying and financing

By Steve Gelsi

Mortgage company aims at more mobile transactions in purchase of online realtor

Rocket Companies Inc. said it would pay $1.8 billion for online realtor Redfin Corp. in an effort to make it easier for their customers to buy real estate on their mobile devices.

"We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes," Redfin Chief Executive Glenn Kelman said in a prepared statement.

Redfin's stock (RDFN) rose 80% to $10.51 a share in premarket trading on Monday after Rocket $(RKT.UK)$ said it would pay $12.50 a share of its stock for each share of Redfin. Rocket Companies' stock fell 8% to $14.44.

Each share of Redfin common stock will be exchanged for 0.7926 shares of Rocket Companies Class A common stock. Based on Friday's closing price for Rocket of $15.77 a share, each Redfin share will be valued at $12.50. That's more than double the stock's Friday closing price of $5.82 a share.

Rocket Companies Chief Executive Varun Krishna said the merger deal will connect steps of the real-estate search and financing process in a way that "removes friction, reduces costs and increases value to American homebuyers."

Ahead of the deal, Rocket Companies stock has risen 40% so far in 2025, while Redfin's stock is down 26% this year. The Nasdaq COMP is down 5.8% in 2025.

-Steve Gelsi

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March 10, 2025 07:29 ET (11:29 GMT)

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