NEWSLETTER
Red gum (RDFN) He is taking off like a rocket.
The technological operation real estate company saw that its actions roared at the Blue Wild on March 10, in news, was being acquired by Rocket Cos. (RKT) in an agreement of the entire stock valued at $ 1.75 billion.
Redfin's shares rose from 65% to $ 9.62 in the last check, while rock shares slid almost 17% to $ 13.15.
“Rocket and Redfin have a unified vision of a better way to buy and sell houses,” Varun Krishna, Rocket Cos. “Executive director, he said in a statement.
Rocket cos. CEO: Deal will improve the purchase of housing
“Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that eliminates friction, reduces costs and increases the value for American housing buyers,” he added.
Redfin, which was founded in 2004, operates a home search platform with more than 1 million lists of sale and rental and a brokerage of more than 2,200 agents.
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Fintech Rocket Cos. It offers mortgage loans, real estate and personal finance services.
The agreement is expected to close in the second or third quarter, and the CEO of Redfin, Glenn Kelman, will continue to lead the business.
Investment companies quickly reacted to the news of the acquisition.
Rocket cos. 'Redfin's acquisition has the potential to increase the pace of market market profits for rock due to a broader funnel, UBS tells investors in a research note.
The investment firm, which sees the long -term potential for the transaction, said that the risk of integration and the schedule of accumulation probably weigh on rocket actions in the short term.
UBS has a neutral rating and an objective price of $ 14 in rocket shares.
The analyst cites $ 200 million in synergies
The BTIG analyst Jake Fuller says that Redfin's acquisition by Rocket is based on the ability to sell financial products to housing buyers to justify “what on the surface” is an “aggressive price.”
The agreement values Redfin to $ 12.50 per share, which puts it above the fair value range of $ 3 to $ 12 that Fuller has articulated based on a range of underlying assumptions of the real estate market.
Related: analysts restart the objective of Redfin's shares after profits
The analyst, who also has a neutral rating in Redfin, said that Rocket has identified $ 200 million synergies, including $ 60 million on the income side. That would reduce multiple purchase to a “more susceptible” estimate of nine times 2026 for profits before interest, taxes, depreciation and amortization.
Bank of America Securities analyst Mihir Bhatia said the company considers that the agreement is a continuation of the Rocket strategy to advance “by the funnel.”
The combined entity will provide customers with a perfect search experience to save, and Rocket believes that this acquisition will help boost the growth of buying-mycrowes, Bhatia added.
The company also maintains a neutral rating in rocket with an objective price of $ 15.
Last month, Redfin lost the background expectations of the fourth quarter of Wall Street the fourth quarter was lost.
The company recorded a loss of 29 cents per share, broader than the loss of 20 cents per share a year before and below the estimate of consensus for a loss of 23 cents per share.
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