Redfin Corp. said late Tuesday it has agreed to buy mortgage lender Bay Equity Home Loans for $135 million in cash and stock. The San Francisco Bay Area lender is licensed in 42 states and employs about 1,200 people, Redfin said. “The acquisition accelerates Redfin’s strategy to become a one-stop shop for brokerage, lending and other services,” the company said. The deal is expected to close in the second quarter, pending customary approvals, and to be “accretive” to Redfin’s per-share earnings this year, Redfin said. Bay Equity would continue to operate under its name and originate mortgages for customers working with Redfin agents and others, Redfin said. As part of the deal, Redfin plans to eliminate 121 Redfin Mortgage jobs, which the company said represented less than 2% of its total number of employees. Workers affected have been notified and could choose other roles within the company, Redfin said. Shares of Redfin were flat in the extended session after ending the regular trading day up 2.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.