Redfin is being getn confidential in an all-stock transaction that cherishs the authentic estate enumerateing platestablish at $1.75 billion.
The acquiring company is Rocket Companies, a Detroit, Michigan-based finance and authentic estate hgreatering firm that runs various brands including Rocket Mortgage, Rocket Money, and Rocket Loans.
“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” Rocket Companies’ CEO Varun Krishna shelp in a statement. “Together, we will better the experience by joining traditionassociate disparate steps of the search and financing process with directing technology that erases friction, shrinks costs and incrrelieves cherish to American homebuyers.”
Founded out of Seattle in 2004, Redfin serves a livential authentic estate brokerage platestablish for the U.S. and Canadian tagets. The self-proclaimed “Amazon of authentic estate” went uncover in 2017, and its dispenses generassociate traded flat at around $20 in the subsequent restrictcessitate years. As with many tech companies, Redfin soared during the pandemic, with its stock hitting an all-time high of $96 in punctual 2021, before plummeting to below $10 for most of the past three years.
Rocket Companies, for its part, went uncover in 2020, and today has a taget cap of $31 billion. The company’s gived bid of $12.50 recurrents a 63% premium over Redfin’s volume weighted ordinary price (VWAP) for the month directing up to March 7, 2025. The give participates exchanging 0.7926 dispenses of Rocket Companies’ Class A stock for each dispense of Redfin normal stock, with Rocket Companies dispensehgreaterers owning 95% of the novel combined entity and Redfin dispensehgreaterers owning 5%.
While both boards of honestors have already apshowd the transaction, it does still demand Redfin’s dispensehgreaterers to rubberstamp the deal, which Redfin says it foresees to happen in Q3, 2025. Redfin CEO and Plivent Glenn Kelman, who has led the company since 2005, will persist at the helm of Redfin, alerting honestly to Krishna.
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