Rocket Acquires Mr. Cooper in $9.4 Billion Deal
Mortgage company Rocket is acquiring Coppell-based Mr. Cooper in an all-stock deal valued at $9.4 billion, the parties announced Monday.
Rocket Companies said in a news release the deal creates a business representing one in every six mortgages in the United States and adds seven million additional clients.
The acquisition will also boost loan volumes and recurring revenue while lowering client acquisition costs.
Benefits of the Acquisition
“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,” Jay Bray, Mr. Cooper Group chairman and CEO, said in a statement.
Bray will become President and CEO of Rocket Mortgage once the deal is closed, reporting to current Rocket CEO Varun Krishna. Dan Gilbert will remain Chairman of Rocket Companies.
The board of the combined company will consist of 11 members. Two will be from the board of Mr. Cooper, according to the news release.
Terms of the Deal
Mr. Cooper shareholders will receive a fixed rate of 11 shares of Rocket for each share of Mr. Cooper common stock. Rocket shareholders will own 75% of the combined company. The deal is expected to close in the final quarter of 2025.
That’s a 35% premium on Mr. Cooper shares, based on the price before trading started Monday.
Recent Developments in the Mortgage Industry
The deal comes after Rocket announced earlier this month that it would acquire Redfin, a popular online listings and brokerage platform, for $1.75 billion.
Mr. Cooper is one of the largest servicers and originators of home loans in the nation.
The National Association of Realtors announced earlier this month that the sales of previously occupied U.S. homes rose in February by 4.2% over January to a seasonally adjusted annual rate of 4.26 million units.
The increase was attributed to declining mortgage rates and higher inventory. The average 30-year mortgage rate as of March 27 was 6.65%, according to Freddie Mac.
Local Real Estate Market Trends
In February, the median price of a D-FW home was $395,000, up 1.5% from the previous year. Nearly 6,400 home sales were closed, down 4.4% from February 2024, according to data from the MetroTex Association of Realtors.
D-FW Real Estate News
Other Local Developments
Plans haven’t been submitted, but most residents at Monday’s public hearing opposed the project.
Gov. Greg Abbott announced that the Texas Workforce Commission is investigating the neighborhood’s developers.
Conclusion
The acquisition of Mr. Cooper by Rocket is expected to create a leading mortgage company in the industry, offering a wide range of services to homeowners. The deal is expected to close in the final quarter of 2025 and will result in Rocket shareholders owning 75% of the combined company.
Frequently Asked Questions
Q: What is the value of the acquisition?
A: The acquisition is valued at $9.4 billion.
Q: Who will lead the combined company?
A: Jay Bray, Mr. Cooper Group chairman and CEO, will become President and CEO of Rocket Mortgage, reporting to current Rocket CEO Varun Krishna.
Q: What is the expected closing date of the deal?
A: The deal is expected to close in the final quarter of 2025.
Q: How will the acquisition affect the mortgage industry?
A: The acquisition is expected to create a leading mortgage company in the industry, offering a wide range of services to homeowners and increasing competition in the market.
