Rocket Companies announced on Monday that it will acquire rival mortgage company Mr. Cooper Group in a $9.4 billion all-stock deal, which will create a combined entity managing over $2.1 trillion in mortgages and serving nearly 10 million clients—one in six mortgages in the US.
This strategic merger is anticipated to generate $100 million in additional pre-tax revenue and $400 million in cost savings through operational efficiencies.
“Servicing is a critical pillar of home ownership — alongside home search and mortgage origination,” said Varun Krishna, Rocket’s chief executive. “With the right data and AI infrastructure, we will deliver the right products at the right time . . . We look forward to welcoming Mr Cooper’s nearly 7 million clients.”
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Mr. Cooper shareholders will receive a 35% premium, equating to 11 Rocket shares for each Mr. Cooper share, while Rocket shareholders will own 75% of the new entity.
The deal is expected to close in the fourth quarter of 2025, and leadership will see Mr. Cooper’s CEO, Jay Bray, stepping in as President and CEO of Rocket Mortgage.
Despite the potential benefits, Rocket’s stock dipped by 3.5% following the announcement, contrasting with a 27% rise in Mr. Cooper’s shares.
This acquisition follows Rocket’s recent $1.75 billion purchase of Redfin, illustrating a trend of consolidation in the mortgage sector as companies seek to enhance competitiveness and efficiency.
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