SignalsAZ.com Prescott News Podcast - Rocket Companies to Purchase Redfin

Starting point is 00:00:00 Text to Speech Audio articles made possible by Cast 11 Talking Glass Media. Rocket Companies, NYSE, RKT, the Detroit-based FinTech platform consisting of mortgage, real estate and personal finance businesses, today announced it as entered into an agreement to purchase Redfin, NASDAQ, RDFN, a leading digital real estate brokerage, in an all-stock transaction for a value of $12.50 per Redfin share, or $1.75 billion of equity value. Founded in 2004, Redfin is one of America's most recognized real estate brands, operating a top three home search platform with more than one million for sale and rental listings and a tech-powered brokerage of more than 2,200 agents.

Starting point is 00:00:43 Rocket and Redfin have a unified vision of a better way to buy and sell homes, said Varum Krishna, CEO of Rocket companies. Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers. For 40 years, Rocket's digital platform has grown to provide home financing in all 50 states across 3,000 plus counties and parishes. By combining Redfin's home search and real estate agent network with Rocket's mortgage origination and servicing capabilities, the company envisions a more seamless experience from search to close, to servicing and future transactions.

Starting point is 00:01:23 Rocket and Redfin's approaches to lending and brokerage service have always been too of one vision to make the whole home buying process magical, said Glenn Kelman, CEO of Redfin. 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. Varun and I see how much better real estate could be when AI guides customers not just through that first step in their search, but all the way home, through the sale, the loan and then a lifetime of accumulating equity and wealth.

Starting point is 00:01:57 significant strategic and financial benefits. Bringing rocket companies and Redfin together is expected to introduce more consumers to the Rocket ecosystem. Rocket companies will benefit from Redfin's nearly 50 million monthly visitors, 1 million active purchase and rental listings and staff of 2,200 plus real estate agents across 42 states, with Redfin agents ranking in the top 1% of agents working at any nationwide brokerage. Drive Rockets purchase mortgage growth, the transaction will generate significant revenue synergies across search, real estate brokerage, mortgage origination, title and servicing. Rocket will match homebuyers with the best real estate agents and the best loan officers across the combined companies. In 2024, Rocket saw an 8% year-over-year increase

Starting point is 00:02:42 in purchase market share and aims to further accelerate growth through this acquisition. AI, technology and personalization at scale, with more than 14 petabytes of combined data, Rocket gains unparalleled consumer insights, including information about homebuyers, seller and agents across a data repository of 100 million properties. This data will strengthen Rocket's Aon models enabling easier and more personalized and automated consumer experiences. Achieve significant synergies and earnings accretion. Rocket expects the combined company to achieve more than $200 million in run rate synergies by 2027, including approximately $140 million in cost synergies from rationalization of duplicative operations and other costs. In addition,

Starting point is 00:03:26 more than $60 million in revenue synergies from pairing to companies financing clients with Redfin real estate agents, and from driving clients working with Redfin agents to Rocket's mortgage, title and servicing offerings. The transaction is expected to be accretive to Rocket Companies' adjusted earnings per share by the end of 2026. Rocket companies will maintain its strong balance sheet and conservative leverage profile upon close of the transaction. Under the terms of the agreement, each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket Company's Class A common stock, which represents a premium of 63% over the volume weighted average price, VWAP, of Redfin's common stock for the 30 days ending March 7th

Starting point is 00:04:08 2025. Upon completion of the transaction, current Rocket Company's shareholders will own approximately 95% of the combined company on a fully diluted basis, while Redfin shareholders will own approximately 5%. Timing and approvals The transaction has been approved by the boards of directors of both Rocket Companies and Redfin. It is expected to close in the second or third quarter of 2025, subject to approval by Redfin shareholders and the satisfaction of other closing conditions, including the expiration or termination of the applicable waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976.

Starting point is 00:04:45 Upon closing of the transaction, it is expected that Redfin CEO Glenn Kelman will continue to lead the Redfin business, reporting to Rocket Company's Cs CEO Varum Krishna. Benefits according to Rocket. Most visited real estate brokerage website joins with largest mortgage lender. Connects Redfin's nearly 50 million monthly visitors to Rocket's mortgage products. Rocket companies to collapse up C structure and declares a special cash dividend of 80 cents per share of Class A common stock to be paid on April 3rd. Rocket to host conference call and webcast today at 8amet. About Rocket Companies. Founded in 1985, Rocket Companies, NYSC, RKT, is a Detroit-based fintech platform including mortgage,

Starting point is 00:05:30 real estate and personal finance businesses, rocket mortgage, rocket homes, rocket close, rocket money, and rocket loans. With more than 65 million call logs each year, 10 petabytes of data and a mission to help everyone home, rocket companies is well positioned to be the destination for AI-fueled homeownership. Known for providing exceptional client experiences, J.D. Power has ranked Rocket Mortgage No. 1 in client satisfaction for primary mortgage origination and mortgage servicing a total of 22 times, the most of any mortgage lender. Source, Rocket Companies.com.com.

SignalsAZ.com Prescott News Podcast - Rocket Companies to Purchase Redfin

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