Merger brings America's biggest real estate platform and mortgage lender under one roof
Rocket Companies has finalized its $1.75 billion all-stock acquisition of Redfin, officially bringing one of the most visited real estate platforms under the umbrella of America’s largest mortgage lender.
Under the deal, Rocket paid $12.50 per share for Redfin, acquiring a platform that includes more than one million listings and a brokerage with over 2,000 agents.
The acquisition is expected to drive mortgage purchase growth at Rocket by integrating its financing services with Redfin’s real estate transactions. Rocket projects the combined company will deliver over $200 million in run-rate synergies within two years and generate more than $60 million in new revenue by connecting its clients with Redfin agents.
“The Redfin team is best-in-class in building a product experience focused on simplicity. It was a perfect fit for Rocket’s vision of what the homeownership experience should be,” Rocket Companies CEO Varun Krishna said in a statement. “I’ve used Redfin every day for the last 20 years. It helped me find and fall in love with my first home, completely changing how I thought about real estate.”
As part of the same announcement, Rocket Companies disclosed the completion of its “Up-C” collapse, an internal reorganization that simplifies its corporate structure. Effective June 30, Rocket eliminated its high-vote/low-vote share classes, reducing four stock classes to two.
Public shareholders now hold Class A common stock, while founder Dan Gilbert and other Rock Holdings Inc. (RHI) affiliates hold Class L shares. The change is intended to streamline Rocket’s structure, improve equity liquidity, and enhance its ability to conduct stock-based acquisitions.
Redfin Powered by Rocket
Redfin has rebranded under the new name "Redfin Powered by Rocket” as part of the merger rollout. Additional products and services for consumers, real estate agents, and brokers are expected to follow.
The companies also launched “Rocket Preferred Pricing,” a new program offering a one percentage point interest rate reduction for the first year or up to $6,000 in lender credits at closing. This incentive is available to qualified clients using Rocket Mortgage to finance a home purchase through a Redfin listing or Redfin agent, across conventional, FHA, and VA loans.
The merger drew political attention prior to its close. In June, a group of lawmakers, including Senators Elizabeth Warren, Cory Booker, Mazie Hirono, Tina Smith, and Bernie Sanders, urged the Department of Justice and the Federal Trade Commission to review the merger.
Read more: Senators raise antitrust concerns over Rocket-Redfin merger
In their letter, the senators argued the deal could consolidate too much power in the housing market, citing Rocket’s reach across mortgage origination, servicing, and real estate. They warned that the transaction could reduce consumer choice and raise costs.
Rocket is also planning a separate $9.4 billion acquisition of Mr. Cooper Group, which would expand its footprint in mortgage servicing and is subject to additional regulatory review.
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