- Rocket Companies will acquire Mr. Cooper Group for $9.4B in an all-stock deal, combining two of the largest names in U.S. mortgage lending and servicing.
- The deal values Mr. Cooper shares at a 35% premium over their 30-day volume-weighted average, with shareholders receiving 11 Rocket shares per Mr. Cooper share.
- The combined company will service over $2.1T in mortgages, or roughly one in every six home loans in the U.S.
- Rocket expects the deal to generate $100M in pre-tax revenue and $400M in pre-tax cost savings.
- Mr. Cooper CEO Jay Bray will become President of Rocket Mortgage, reporting to Rocket Companies CEO Varun Krishna.
A Monumental Merger
Rocket Companies has reached a $9.4B agreement to acquire Mr. Cooper Group, marking one of the largest-ever mergers in the mortgage sector. The deal, announced Monday, underscores Rocket’s aggressive expansion strategy and further consolidates its position at the top of the U.S. housing finance market, according to The Real Deal.
Bigger Than Ever
Post-merger, the combined company is expected to service more than $2.1T in loan volume, giving it control of about 17% of all U.S. residential mortgages. Rocket will also absorb Mr. Cooper’s 7M customers and 150M customer interactions—resources the company says will help scale its AI-powered homeownership platform.
Mr. Cooper is currently the largest home loan servicer in the country, while Rocket is already one of the top mortgage originators.
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Financial Impact & Leadership
Rocket projects the acquisition will generate $100M in pre-tax revenue and yield $400M in pre-tax cost savings. As part of the agreement, Rocket shareholders will own 75% of the merged entity, and Mr. Cooper shareholders will hold the remaining 25%.
Jay Bray, Mr. Cooper’s CEO, will be the President of Rocket Mortgage following the close, which is expected in Q425.
Strategic Growth Spree
This marks Rocket’s second major acquisition this month. Earlier in March, it agreed to purchase real estate platform Redfin in a $1.75B deal to strengthen its pipeline from home search to mortgage close.
Rocket recently reported $1.8B in quarterly revenue and $649M in net income. Alongside its acquisition strategy, the company is also streamlining its capital structure to increase equity liquidity and improve transaction readiness.
Why It Matters
As Rocket moves to integrate mortgage servicing, origination, and digital homebuying under one roof, it’s redefining what a full-stack real estate and lending company looks like. This deal will likely spark more consolidation across the mortgage and proptech sectors as competitors respond.
