Investing.com -- Shares of Rocket Companies (NYSE: RKT ) fell 7% today after the company announced its plans to acquire Redfin (NASDAQ: RDFN ), which conversely saw its shares soar 81%. The all-stock deal, valued at $1.75 billion, or $12.50 per Redfin share, represents a 63% premium over Redfin’s average stock price in the 30 days leading up to March 7, 2025.

Detroit-based Rocket Companies, a fintech platform that includes mortgage, real estate, and personal finance businesses, aims to combine its digital mortgage lending services with Redfin’s online real estate brokerage to create a more integrated home buying experience. Redfin, known for its popular home search platform and network of real estate agents, is expected to introduce nearly 50 million monthly visitors to Rocket’s mortgage products.

The transaction is expected to drive Rocket’s purchase mortgage growth and generate significant revenue synergies across both companies’ services. Rocket Companies anticipates more than $200 million in run-rate synergies by 2027, including approximately $140 million in cost savings and over $60 million in revenue synergies. The deal is also expected to be accretive to Rocket’s adjusted earnings per share by the end of 2026.

Rocket Companies CEO Varun Krishna highlighted the shared vision of the two companies to improve the home buying and selling experience by connecting various steps of the process with advanced technology. Redfin CEO Glenn Kelman emphasized the potential for a seamless customer experience from home search to loan qualification.

The acquisition has been approved by both companies’ Boards of Directors and is expected to close in the second or third quarter of 2025, subject to Redfin shareholder approval and other closing conditions. Upon completion, Redfin’s CEO will continue to lead the Redfin business under the Rocket Companies umbrella.

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