News
Rocket to Buy Redfin in $1.75 Billion All-Stock Deal
The mortgage giant Rocket Cos. has agreed to buy Redfin in an all-stock deal valuing the online real-estate brokerage at $1.75 billion.
The owner of Rocket Mortgage said Monday that the deal values Redfin shares at $12.50 apiece and connects Redfin’s nearly 50 million monthly visitors with Rocket’s suite of mortgage products.
Redfin shares surged 80% to $10.50 in early trading, while shares of Rocket fell 9.3% to $14.30.
Under the terms of the transaction, each Redfin share will be exchanged for almost 80% of a Rocket share. When the deal is closed, current Rocket shareholders will own 95% of the combined company, with Redfin shareholders owning the rest.
Rocket shareholders will also receive a special cash dividend of 80 cents a share.
The transaction has been approved by the boards of both companies and is expected to close in the second or third quarter of the year, subject to approval by Redfin shareholders and regulators.
Upon closure of the deal, Redfin Chief Executive Glenn Kelman is expected to lead that business and report to Rocket Chief Executive Varun Krishna.
Write to Dean Seal at dean.seal@wsj.com
Corrections & Amplifications
Redfin Chief Executive Glenn Kelman is expected to lead Redfin and report to Rocket Chief Executive Varun Krishna. An earlier version of this article incorrectly said that Kelman will lead Redfin and report to Krishna. (Corrected on March 10)