Rocket Companies Acquires Mr. Cooper Group In A Transformative $9.4 Billion Deal

$COOP

In a significant move within the mortgage industry, Rocket Companies (NYSE:RKT) has announced the acquisition of Mr. Cooper Group (NASDAQ:COOP), one of the largest mortgage servicers in the US, in an all-stock transaction valued at $9.4 billion. This acquisition marks a pivotal development as Rocket Companies aims to create a comprehensive homeownership platform that integrates home search, mortgage origination and servicing operations.

The strategic acquisition by Rocket Companies involves an all-stock deal where Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock they hold. This arrangement values Mr. Cooper at approximately $143.33 per share, representing a 35% premium over the volume-weighted average price of Mr. Cooper’s stock for the 30 days ending on March 28, 2025.

This merger is set to create a mortgage behemoth, servicing more than $2.1 trillion in loan volume and nearly 10 million clients across the United States. This represents about one in every six mortgages in the country, positioning the combined entity as a dominant force in the mortgage sector.

These synergies arise from higher recapture rates and the integration of Rocket’s title, closing and appraisal services into Mr. Cooper’s origination operations. Moreover, Rocket anticipates $400 million in pre-tax cost savings from streamlined operations, reduced corporate expenses and enhanced technology investments.

This strategic alignment is expected to bolster the combined company’s profitability across various interest rate market environments. Post-merger, Mr. Cooper Group’s Chairman and CEO, Jay Bray, will assume the role of President and CEO of Rocket Mortgage, reporting directly to Varun Krishna.

Varun Krishna, highlighted the transaction’s benefits, noting that it would drive higher loan volumes and foster long-term client relationships. The deal is expected to be immediately accretive to Rocket’s adjusted earnings per share upon closing. It is projected to generate annual run-rate revenue and cost synergies of approximately $500 million.

The combined company’s board will consist of 11 members, with nine from Rocket and two from Mr. Cooper, ensuring a blend of expertise from both entities. The announcement has stirred the market, with Mr. Cooper’s stock experiencing a significant uptick. The companies prepare for a seamless integration, the focus will remain on enhancing the homeownership experience through innovative solutions and customer-centric services.

**DISCLAIMER: THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS INVESTMENT ADVICE. INVESTING INVOLVES RISK, INCLUDING THE POTENTIAL LOSS OF PRINCIPAL. READERS ARE ENCOURAGED TO CONDUCT THEIR OWN RESEARCH AND CONSULT WITH A QUALIFIED FINANCIAL ADVISOR BEFORE MAKING ANY INVESTMENT DECISIONS.**