Rocket Companies to acquire Redfin in $1.75B deal

• Rocket Companies, owner of lending giant Rocket Mortgage, acquires digital real estate brokerage Redfin in a $1.75 billion deal.

• The acquisition aims to merge Redfin's home search platform with Rocket's mortgage services to create a seamless home-buying experience.

Rocket Companies—a Detroit-based fintech specializing in mortgage lending, real estate, and personal finance solutions—is acquiring digital real estate brokerage Redfin in a deal worth $1.75 billion.

Complementary businesses: The companies say the acquisition aims to integrate Redfin's home search platform and agent network with Rocket's mortgage services, creating a seamless home-buying experience for consumers.

* Rocket Companies subsidiary Rocket Mortgage is one of the largest mortgage lenders in the U.S. and pioneered a fully digital mortgage experience. Rocket Companies' other affiliated businesses including Rocket Homes, a real estate search platform, and Rocket Loans, which provides personal loans.

* Redfin is a prominent real estate brand, operating a top-three home search platform with over 1 million for-sale and rental listings and nearly 50 million monthly visitors, offering Rocket Companies a substantial audience to introduce its mortgage products.

Streamlining the purchase process: Redfin CEO Glenn Kelman described the two companies' approaches to lending and brokerage service as “two halves of one vision” which could be integrated for a simplified home buying experience. "We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes," he said.

The deal: The acquisition is an all-stock agreement whereby each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket Companies Class A common stock. Once the deal is completed, current Rocket Companies shareholders will own approximately 95% of the combined company, while Redfin shareholders will own approximately 5%.