Redfin to Acquire US Mortgage Lender Bay Equity Home Loans.

MANews-(C)2009-2022

US-based real estate brokerage Redfin (NASDAQ: RDFN) has entered into an agreement to acquire California mortgage lender Bay Equity Home Loans, the company said.

Under the terms of the merger agreement, the purchase price is estimated to be USD 135m in cash and stock.

Founded in 2007 in the San Francisco Bay Area, Bay Equity is a licensed mortgage lender in 42 states and employs approximately 1,200 people.

The acquisition accelerates Redfin's strategy to become a one-stop shop for brokerage, lending and other services.

Redfin expects the acquisition to close in 2Q22, pending customary approvals, and to be accretive to 2022 earnings per share.

At nearly ten times the size of Redfin's existing lending business, Bay Equity helps match the scale of Redfin's nationwide brokerage of approximately 2,400 agents, increasing the number of brokerage customers whose homes Redfin can finance.

After the acquisition closes, all Redfin Mortgage lending operations will be consolidated under Bay Equity. Some Redfin Mortgage employees, including Redfin's loan officers, will move to Bay Equity.

Redfin has also made the decision to eliminate 121 Redfin Mortgage roles, which represent less than 2% of Redfin's total staff, primarily in sales support, capital markets and operations.

There are no plans to reduce Bay Equity staff.

As a result of the workforce reduction associated with the acquisition, Redfin expects to incur a pre-tax charge for one-time termination benefits, which consist of...

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