Prnewswire·2025-03-10 11:00Core Viewpoint - Rocket Companies has announced an agreement to acquire Redfin in an all-stock transaction valued at $1.75 billion, with each Redfin share priced at $12.50, representing a 63% premium over its recent trading price [1][7]. Company Overview - Rocket Companies is a Detroit-based fintech platform that includes mortgage, real estate, and personal finance businesses, while Redfin is a leading digital real estate brokerage known for its technology-driven services and extensive listings [1][22][24]. - Redfin operates a top-three home search platform with over 1 million listings and employs more than 2,200 agents across 42 states [2][6]. Strategic and Financial Benefits - The merger aims to create a seamless experience for homebuyers by integrating Redfin's real estate services with Rocket's mortgage capabilities, enhancing customer experience and reducing costs [3][4]. - The combined entity is expected to achieve over $200 million in run-rate synergies by 2027, including approximately $140 million in cost synergies and over $60 million in revenue synergies [6]. - Rocket Companies anticipates that the acquisition will be accretive to its adjusted earnings per share by the end of 2026 [6]. Transaction Details - Each share of Redfin will be exchanged for 0.7926 shares of Rocket Companies Class A common stock, with Rocket shareholders retaining approximately 95% ownership of the combined company [7]. - The transaction has been approved by the boards of both companies and is expected to close in the second or third quarter of 2025, pending shareholder approval and regulatory conditions [8]. Organizational Changes - Rocket Companies will simplify its organizational structure by collapsing its "Up-C" structure, which will enhance equity liquidity and improve its ability to use common stock for acquisitions [12]. - A special cash dividend of $0.80 per share of Class A common stock has been declared, to be paid on April 3, 2025 [13].