Redfin has closed its $608 million acquisition of apartment-listings firm RentPath, just 42 days after the plan was disclosed.
The announcement comes after last week’s news that the merger was approved by a bankruptcy court.
RentPath is one of the top rental sites in the U.S., operating ApartmentGuide.com, Rent.com, and Rentals.com along with its eponymous flagship site. It now folds into flat-fee brokerage Redfin, which sees it as a gateway offering for home seekers who aren’t yet ready to buy.
“We’re over the moon that RentPath and Redfin are officially hitched,” Redfin CEO Glenn Kelman wrote in a statement. “A deal that we expected to take 90 days to approve closed in 42. And now we can’t wait to tell RentPath’s property-management customers, who were once uncertain about the company’s future, about our big plans to double our audience of people seeking a home to rent. Already, we’ve discovered that RentPath’s modern technology for importing rental listings fits perfectly with ours, and that the two companies have a shared vision to make renting a home fast, easy and magical, for consumers and property-management companies alike.”
Although Redfin is based in Seattle, RentPath will remain headquartered in Atlanta, according to the statement. RentPath CEO Dhiren Fonseca will stay on as president to manage its integration with the new owner while Redfin seeks a permanent replacement.
“The RentPath team is thrilled to be joining Redfin because we share a customer-first philosophy,” said Fonseca. “The response to the acquisition news from our multifamily customers has been tremendous, and they are eager to tap into Redfin’s massive audience and see us build upon the all-time highs in traffic and leads we delivered in 2020.”
Though RentPath’s financial struggles led the firm into bankruptcy, it is still considered one of the main rental listings sites in the U.S. That’s why last December, the U.S. Federal Trade Commission sued to stop its proposed merger with CoStar, operator of leading rental site Apartments.com. Such a merger would have eliminated serious competition in the listings market for large multifamily properties, even taking into account Zillow, the FTC determined.
RentPath’s main sites had combined monthly visits in February of 20.5 million visits, according to SimilarWeb. That compares to about 60 million for CoStar’s most popular rental sites (Apartment.com, ForRent.com, ApartmentFinder.com and ApartmentHomeLiving.com).