Rocket Companies Buy Mr. Cooper Group for $9.4 Billion
Rocket Companies, the Detroit-based fintech platform including mortgage, real estate, title and personal finance businesses, on Monday announced an agreement to acquire Mr. Cooper Group Inc. in an all-stock transaction for $9.4 billion in equity value, based on an 11.0x exchange ratio.
The transaction is expected to close in the fourth quarter of 2025, subject to approval of Mr. Cooper shareholders and the satisfaction of other closing conditions, including customary regulatory approvals.
With this acquisition, Rocket will bring its industry-leading mortgage recapture capabilities to a combined servicing book of $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in America.
Rocket will bring together the homeownership experience at scale with the acquisitions of Mr. Cooper and Redfin. This allows Rocket to accelerate its AI-powered platform and remove the friction and complexities plaguing today’s home-buying process.
Rocket CEO Varun Krishna said that servicing has been a critical pillar of homeownership alongside home search and mortgage origination.
“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. We look forward to welcoming Mr. Cooper’s nearly 7 million clients,” Krishna said.
Mr Cooper Group Chairman and CEO Jay Bray said that his company has been on a journey to transform the homeownership experience, and they have built the most advanced servicing platform in the mortgage industry.
He added: “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. I am deeply grateful for the dedication of the Mr. Cooper team and look forward to our continued work as we lead our industry into the future of homeownership.”
Combined Company’s Benefits
Rocket’s combined servicing portfolio will exceed $2.1 trillion in unpaid principal balance – or one in every six mortgages in America. It has ranked #1 in J D Power’s mortgage servicer study for 10 years and #1 in mortgage origination 12 times, driving the company’s 83% recapture rate – triple the industry average. With a significantly larger servicing portfolio, Rocket is poised to sustain its industry-leading retention and recapture rates.
Following the acquisition of Mr. Cooper, Rocket will gain understanding of nearly 7 million additional clients and 150 million annual customer interactions.
The combined company will attain a balanced business model and maintain stability in all market environments. Rocket will drive earnings growth from high-margin recapture opportunities on the combined servicing portfolio, which together generated $4 billion of servicing fee revenue in 2024.
The transaction is expected to generate $100 million in additional pre-tax revenue from higher recapture rates and attaching Rocket’s title, closing and appraisal services to Mr. Cooper’s existing originations.
Rocket projects $400 million in pre-tax cost savings from streamlining operations, corporate expense and technology investments. The transaction is also expected to be accretive to Rocket’s adjusted earnings per share immediately after closing.
Governance and Leadership
The combined company will be led by an experienced board and leadership team that leverages the strengths and capabilities of both companies. Upon closing of the transaction, it is expected that Jay Bray will become President and CEO of Rocket Mortgage, reporting to Krishna. Dan Gilbert will remain Chairman of Rocket Companies.
Under the terms of the agreement, Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock. This represents a $143.33 per share value based on the closing price as of 28 March 2025, and a premium of 35% over the volume weighted average price (VWAP) of Mr. Cooper’s common stock for the 30 days ending the same day.
Upon completion of the transaction, Rocket shareholders will own approximately 75% of the combined company on a fully diluted basis pro forma for the Redfin transaction, while Mr. Cooper shareholders will own approximately 25%.
