Rocket Companies has announced a definitive agreement to acquire Mr. Cooper Group Inc. in an all-stock transaction valued at $9.4 billion. This acquisition will combine Rocket's originations-servicing capabilities with Mr. Cooper's advanced servicing platform. "With the right data and AI infrastructure we will deliver the right products at the right time," said Varun Krishna, Rocket CEO. The transaction aims to enhance Rocket's platform by integrating Mr. Cooper’s servicing operations, providing services to nearly 10 million customers across $2.1 trillion in loans.
Jay Bray, Mr. Cooper Group Chairman and CEO, commented, "By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry, offering an end-to-end homeownership experience backed by leading technology." This merger is projected to boost annual revenue and cost synergies by approximately $500 million.
Upon closing, Mr. Cooper's CEO, Jay Bray, will become President and CEO of Rocket Mortgage, reporting to Rocket's Varun Krishna. Dan Gilbert will continue as Chairman of Rocket Companies. Mr. Cooper shareholders will receive 11 Rocket shares for each Mr. Cooper share, reflecting a premium of 35% based on the stock prices as of March 28, 2025.
The Boards of both companies have approved the transaction, which is set to close by the fourth quarter of 2025, pending shareholder and regulatory approvals. "Mr. Cooper has been on a journey to transform the homeownership experience," Bray added. Rocket, a Detroit-based fintech, is also in the process of acquiring digital brokerage platform Redfin. The combined operations are expected to expand Rocket's reach and capabilities in the mortgage sector.
The final agreement will expand Rocket's servicing portfolio and improve its loan recapture rates, already noted for their superior industry rankings. The collaboration aims to enhance data-driven services for better client interactions and improved business operations.
Rocket and Mr. Cooper will host a conference call to discuss the transaction, with a webcast available on their respective investor relations websites.