Redfin Corporation (NASDAQ: RDFN) disclosed that it has signed an acquisition agreement to buy RentPath for $608 million in cash. RentPath is based in Atlanta and is the owner of Rent.com, ApartmentGuide.com, and Rentals.com.
After the acquisition, renting a home and buying a home joined their forces to provide an all-in-one solution to its customers. Redfin has garnered recognition as the number one brokerage search site. The firm utilizes the combination of the latest technology and real estate agents to provide a sophisticated solution to buy or sell a house more efficiently.
By connecting qualified renters and property management firms, Redfin provides a simpler solution to customers. This combination of both the firms will not only help customers to buy a house or sell the house but also assists renters to find a suitable resident.
The strategic rationale behind this acquisition is that the combination provides a better search option. More than a third of North American adults are presently renting a house. Redfin has the mission to position itself in a way that when someone thinks of buying, selling, or rent housing the first platform came to their minds is Redfin.
RentPath acquisition by Redfin also offers better value to advertisers as it will boost the reach of RentPath. It also provides more rental opportunities for the rental homes advertised on RentPath sites. Redfin predicted that 10 million of Redfin's 40+ million weekly online guests may also be attracted in rental assets.
Both Redfin and RentPath also boost the traffic by over 20% in 2020. By joining forces with RentPath, Redfin will intend to execute with the largest gateways on all fronts, for each guest. This combination will also increase the renting experience. Redfin is delighted to make the entire process of renting more attractive and better.