Stock market today: Dow, S&P 500, Nasdaq sink after S&P's worst week since September

Mortgage giant Rocket Companies (RKT) announced Monday it struck a deal to purchase digital real estate brokerage Redfin (RDFN) in an all-stock deal valued at $1.75 billion.

Redfin stock rose as much as 76% on the news. Rocket stock fell as much as 10%.

According a statement announcing the deal, Redfin shareholders will receive just less than 0.8 shares of Rocket stock for each share of Redfin owned. Current Rocket shareholders will own about 95% of the combined company.

Rocket shareholders will receive a special cash dividend of $0.80 per share. The deal values Redfin at $12.50 per share.

The companies said the combined company should be able to cut about $140 million of operations and other costs by 2027 and realize an additional $60 million in savings from pairing Redfin agents with Rocket’s financing infrastructure.

The deal was approved by the boards of both companies and is expected to close in the second or third quarter of 2025.

Upon the agreement, Redfin CEO Glenn Kelman will continue to run Redfin’s business, reporting to Rocket Companies’ CEO Varun Krishna.