Rocket Companies, Inc. (RKT) entered a merger agreement on March 10, 2025, to acquire Redfin Corporation (RDFN) in an all-stock deal valued at $1.75 billion.
Under the terms of the agreement, each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket Companies Class A common stock in an all-stock transaction, valuing each Redfin share at about $12.50, representing a 114.78% premium from the stock’s last close.
Redfin is a technology-powered real estate company that operates a leading online marketplace, offering brokerage, rentals, lending, and title services across the U.S. and Canada.
Rocket Companies is a Detroit-based fintech platform specializing in mortgage, real estate, and personal finance, offering services through Rocket Mortgage, Rocket Homes, Rocket Loans, and other digital solutions across the U.S. and Canada.
Rocket expects the combined company to generate over $200 million in run-rate synergies by 2027, including about $140 million in cost synergies from eliminating duplicative operations and other expenses.
Additionally, Rocket anticipates more than $60 million in revenue synergies by connecting its financing clients with Redfin real estate agents and directing Redfin agent clients to Rocket’s mortgage, title, and servicing offerings.
The transaction, expected to close in the second or third quarter of 2025, is also expected to be accretive to Rocket’s adjusted earnings per share by the end of 2026.
Redfin CEO Glenn Kelman will remain in his role, leading the Redfin business and reporting to Rocket Companies CEO Varun Krishna.
Redfin received financial advisory services from Goldman Sachs, with Fenwick & West serving as legal counsel. Rocket was financially advised by Morgan Stanley, while Paul, Weiss, Rifkind, Wharton & Garrison provided legal counsel.
Rocket also announced it would simplify its organizational and capital structure by collapsing its existing “Up-C” structure and reducing its common stock classes from four to two. This will eliminate the high-vote/low-vote structure, with public stockholders retaining their shares, while Dan Gilbert and other Rock Holdings stockholders will hold Rocket Companies common stock directly instead of through Rock Holdings. Their shares will carry one vote per share, down from the 10 votes per share under the current Class D structure, and will be subject to a lock-up.
The Up-C Collapse aims to streamline Rocket’s structure, enhance equity liquidity, improve its ability to use common stock for acquisitions—including Redfin—and create a clearer corporate profile.
In connection with this change, Rocket’s board authorized a special cash dividend of $0.80 per share for Class A common stockholders, payable on April 3, 2025, to shareholders of record as of March 20, 2025.
For a thorough examination of this merger, visit the Deal Metrics page here:
Deal Metrics for the acquisition of Redfin Corporation (RDFN) by Rocket Companies, Inc. (RKT)
Deal Metrics Page Includes:
– Spread history chart of the merger from announcement to completion or failure.
– Key events as the merger progresses through the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– Historical updates on the deal.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article