07:36 AM EDT, 03/10/2025 (MT Newswires) -- Rocket Companies ( RKT ) said Monday it has entered into an agreement to acquire Redfin (RDFN) in an all-stock transaction for $12.50 per share for an equity value of $1.75 billion.

Under terms of the agreement, each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket class A common stock. Rocket said the transaction is expected to be accretive to its adjusted earnings per share by the end of 2026.

The transaction has been approved by the boards of both companies, and is expected to close in Q2 or Q3, subject to Redfin shareholders' approval and other closing conditions. Redfin CEO Glenn Kelman will continue to lead Redfin's business, reporting to Rocket Companies' ( RKT ) CEO Varun Krishna, the two companies said.

When the transaction is completed, Rocket said its shareholders will own approximately 95% of the combined company on a fully diluted basis, while Redfin shareholders will own approximately 5%.