Rocket Rocket Cos agreed. The mortgage lender for RedFin on the Internet in the All-Stock deal worth $ 1.75 billion.
The deal, which was announced on Monday, gives one of the largest mortgage lenders in the country an internal network that includes more than 2000 real estate agents in 42 states and the famous housing lists platform in RDFIN, which attracts approximately 50 million visitors per month.
The RDFIN deal is estimated at $ 12.50 per share. Seattle -based RDFin stocks increased by 68.5 % in the morning to $ 9.81 per share, while shares fell in Rocket Cos.
Detroit -based Rocket expects that the company's acquisition will provide $ 140 million of costs by eliminating repeated operations and other expenses. Rockket also expects that this step will reinforce the revenues of more than $ 60 million by enabling the company to connect its customers with RDFin agents, and ultimately, these customers provide other real estate services provided by Rockket, including ownership secure and loan service.
The companies said that the CEO of Redfin Glenn Kelman will remain at the head of the real estate brokerage company, as it has been reports to the CEO of Rocket.
Under the terms of the deal, each RDFin shared shares will be exchanged with a fixed rate of 0.7926 shares of shared shares of missile A, which represents a premium of 63 % on the average price of the weighted volume of the joint RDFin shares for a period of 30 days ending on March 7.
Once you are completed, current shareholders will own about 95 % of the joint company on a completely diluted basis, while RDFin shareholders will own about 5 %, companies reported.
Companies Board of Directors has already agreed to the treatment, although RedFin shareholders still have to sign up the sale. Companies expect to close the transaction in the second or third quarter this year.