Redfin, one of the largest online brokerage platforms in North America, has announced the acquisition of RentPath for $608 million in cash. RentPath is the owner of several rental sites, including ApartmentGuide.com, Rent.com, and Rentals.com.
With the acquisition, Redfin is hoping to become a one-stop-shop for anyone searching for a new home, regardless of whether it is to rent or buy. In fact, nearly a fourth of Redfin’s 40 million monthly visitors are estimated to have some interest in renting.
Redfin is expecting to have all of RentPath’s listings on its own website by late 2022. The consolidation should significantly augment Redfin’s user base, as RentPath’s network of websites averaged 16 million monthly users in 2020 and both companies saw that statistic grow at over 20% last year.
Investors reacted very positively to the news. Redfin’s shares jumped immediately following the announcement, closed the day up nearly 12%, and rose further in the after hours session.