Rocket To Acquire Mr. Cooper Group
Rocket Companies is acquiring Mr. Cooper Group in an all-stock transaction valued in the billions.
According to a press release, the $9.4 billion equity value deal is based on an 11.0x exchange ratio. Rocket shareholders will own 75% of the combined company, while Mr. Cooper stockholders will own about 25%.
The deal is expected to close in the fourth quarter of 2025, subject to the approval of Mr. Cooper shareholders and the satisfaction of other closing conditions, including customary regulatory approvals. It has been unanimously approved by the Boards of Directors of both Rocket and Mr. Cooper.
With this deal, Rocket’s servicing book will represent one in every six mortgages in America, expanding its already significant footprint to include Mr. Cooper’s seven million clients.
The combined company will service more than $2.1 trillion in loan volume.
“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 and grounded in customer care,” said Jay Bray, Mr. Cooper Group Chairman and CEO.
Bray will become President and CEO of Rocket Mortgage, reporting to Rocket Companies CEO Varun Krishna. Dan Gilbert will remain chairman of the board at Rocket Companies.
A newly formed board will have 11 members: nine from the board of Rocket and two from the board of Mr. Cooper.
“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” Krishna said. “With the right data and AI infrastructure, we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise.”
The news comes just weeks after Rocket’s announcement of a plan to buy online real estate listings platform and brokerage Redfin in an all-stock transaction for a value of $12.50 per Redfin share, or $1.75 billion of equity value.
Rocket says its goal with the Redfin acquisition is to “remove the friction and complexities plaguing today’s homebuying process” with a complete, one-stop platform. The company predicts homebuyers will save $20,000 in fees on a $430,000 home when all is said and done.