The Mortgage lender Rocket Cos. He has agreed to acquire real estate brokerage online Redfin in an agreement of the entire stock valued at $ 1.75 billion.
The transaction, announced on Monday, offers one of the largest mortgage lenders in the country an internal network of more than 2,000 real estate agents in 42 states and the popular platform of housing lists and rents of Redfin, which attracts almost 50 million monthly visitors.
The agreement values Redfin at $ 12.50 per share. Redfin shares, based in Seattle, fired 68.5% in the morning negotiation at $ 9.81 per share, while the actions in Rocket Cos. Cos.
Rocket, based in Detroit, expects the acquisition to save the company $ 140 million in costs by eliminating duplicate operations and other expenses. Rocket also anticipates that the measure will increase revenues by more than $ 60 million by allowing the company to connect its customers with Redfin agents and, ultimately, offers these customers other real estate services that Rocket provides, including title insurance and loan service.
The CEO of Redfin, Glenn Kelman, is expected to remain at the head of the real estate broker, informing the Rocket CEO, the companies said.
According to the terms of the agreement, each action of the ordinary shares of Redfin will be exchanged for a fixed relationship of 0.7926 Rocket Cos actions. Class A Common Common, which represents a 63% premium on the weighted average price of the common Redfin shares for the 30th day of March that ended on March 7.
Once finished, current Rocket shareholders.
The Board of Directors of the companies has already approved the transaction, although Redfin’s shareholders still have to sign the sale. Companies expect the transaction to close in the second or third quarter of this year.
