The Rocket Companies’ acquisition of Redfin has officially been finalized as of today, with Redfin now rebranding to Redfin Powered by Rocket.
The $1.75B deal was announced back in March, with CEO Varun Krishna calling the all-stock deal the marriage of a “unified vision” as the companies have reportedly long had a close relationship.
The deal came under fire, however, when Redfin investors sued the company and its board. Investor Bruce Miller filed the suit alleging that Redfin misled investors by omitting financial details of both companies and the merged businesses, and that deal advisor Goldman Sachs failed to disclose its financial conflicts of interest. Miller had been seeking to block the merger’s completion in his suit.
In addition, Redfin was recently mentioned in a lawsuit filed by Compass against Zillow over the latter’s private listings ban. The lawsuit alleges that Zillow is a monopoly and is using that power to crush competition and stifle innovation.
Compass has accused Redfin of “conspiring” with Zillow after CEO Robert Reffkin received a call from Redfin CEO Glenn Kelman following the Zillow-eXp announcement that reportedly revealed information. It is unclear whether this will also affect Rocket Companies.
Despite challenges, the deal has now gone through.
In response to the merger, the two companies have announced a new product—Rocket Preferred Pricing. The offer allows clients who finance through Rocket Mortgage and use a Redfin agent a one percentage point reduction in their interest rate for the first year of their loan or receive a lender credit at closing, up to $6,000, according to a release.
The companies also stated in a release that there are future plans for more product releases.
