Redfin is undergoing a privatization process through an all-stock deal, with a valuation of $1.75 billion.

The company behind the acquisition is Rocket Companies, a finance and real estate holding firm based in Detroit, Michigan, which operates several brands including Rocket Mortgage, Rocket Money, and Rocket Loans.

According to Rocket Companies’ CEO Varun Krishna, “Rocket and Redfin share a common vision for revolutionizing the home buying and selling process.” In a statement, Krishna added, “By combining our efforts, we will create a more seamless experience for homebuyers by integrating the search and financing processes, leveraging cutting-edge technology to reduce friction, lower costs, and increase value.”

Redfin, founded in Seattle in 2004, serves as a residential real estate brokerage platform for the U.S. and Canadian markets, dubbing itself the “Amazon of real estate”. The company went public in 2017 and experienced relatively stable share prices around $20 in the following years. However, like many tech companies, Redfin’s stock surged during the pandemic, reaching an all-time high of $96 in early 2021, before declining to below $10 for most of the past three years.

Rocket Companies, which went public in 2020, currently has a market capitalization of $31 billion. The proposed offer of $12.50 per share represents a 63% premium over Redfin’s volume-weighted average price for the month leading up to March 7, 2025. The deal involves exchanging 0.7926 shares of Rocket Companies’ Class A stock for each share of Redfin common stock, resulting in Rocket Companies shareholders owning 95% of the combined entity and Redfin shareholders owning 5%.

Although both companies’ boards of directors have already approved the transaction, it still requires approval from Redfin’s shareholders, which is expected to occur in Q3, 2025. Redfin’s CEO and President Glenn Kelman, who has led the company since 2005, will continue to lead Redfin, reporting directly to Krishna.

This is a developing story, please refresh for updates.