Fintech platform Rocket Companies, Inc. (RKT), Monday announced the decision to acquire Redfin (RDFN), a digital real estate brokerage, in an all-stock transaction for a value of $12.50 per Redfin share, or $1.75 billion of equity value.
Through this acquisition, Redfin's home search and real estate agent network will be integrated with Rocket's mortgage origination and servicing capabilities to ensure seamless experience to their customers.
The transaction is expected to be accretive to Rocket Companies' adjusted earnings per share by the end of 2026.
Upon completion of the transaction, current Rocket Companies shareholders will own approximately 95 percent of the combined company on a fully diluted basis, while Redfin shareholders will own the remaining stake.
The deal is expected to close in the second or third quarter of 2025.
In the pre-market hours, Rocket Companies's stock is trading at $14.62, down 7.29 percent on the New York Stock Exchange.
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