SEATTLE, WA (AP) – A large real estate brokerage based in Seattle is being sold to one of the nation’s largest mortgage lenders.
Mortgage lender Rocket Cos. has agreed to acquire online real estate brokerage Redfin in an all-stock deal valued at $1.75 billion.
The deal, announced Monday, March 10, gives the mortgage lender an in-house network of over 2,000 real estate agents across 42 states as well as Redfin’s home and rental listings platform.
Detroit-based Rocket expects the acquisition will save the company $140 million in costs by eliminating duplicative operations and other expenses.
The company says the move will boost revenue by more than $60 million by enabling the company to connect its clients with Redfin’s agents. Rocket could then offer those customers other real estate services that Rocket provides, including title insurance and loan servicing.
The companies’ board of directors have already approved the transaction, though Redfin shareholders still have to sign off on the sale. The companies expect the transaction to close in the second or third quarter this year.
