Rocket Companies to buy real estate firm Redfin in $1.75B deal

Rocket Companies said on Monday it would acquire real estate listing platform Redfin in an all-stock deal valued at $1.75 billion, seeking to boost its lending business.Rocket's $12.50 per share offer equates to a near 115% premium to Redfin's Friday close. Redfin's shares rose about 74%, while Rocket's fell about 12% before the bell.Founded in 2004, Redfin operates a home search platform with more than 1 million for-sale and rental listings and a tech-powered brokerage of more than 2,200 agents.US PENDING HOME SALES FALL TO RECORD LOW IN JANUARYRocket, whose flagship business is its mortgage-lending arm, aims to lean on technology and AI to help link prospective buyers with its financing arm and speed up deals once the transaction closes, the company said.MORTGAGE RATES FALL AGAIN WITH LARGEST WEEKLY DECLINE SINCE MID-SEPTEMBERShareholders of Rocket will own about 95% of the combined company on a fully diluted basis, while Redfin shareholders will own the rest on deal completion expected in the second or third quarter.Detroit-based fintech Rocket said it expects the combined company to achieve more than $200 million in run-rate synergies by 2027.THESE HOUSING MARKETS WERE THE HOTTEST IN JANUARY, ACCORDING TO REALTOR.COMRedfin's CEO, Glenn Kelman, is expected to lead the business.Morgan Stanley served as Rocket's financial adviser, while Goldman Sachs advised Redfin.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business