Mortgage company Rocket buying Mr. Cooper in all-stock deal valued at $9.4 billion
Less than a month after the mortgage giant Rocket Companies moved to absorb the real estate platform Redfin, the company has already struck another major deal: This morning, Rocket Companies (NYSE: RKT) announced it has reached an agreement to acquire its home loan competitor, Mr. Cooper Group Inc. (NASDAQ: COOP), in an all-stock transaction valued at $9.4 billion.
According to a press release, the proposed acquisition will expand Rocket Companies’ servicing portfolio to $2.1 trillion in unpaid principal balance across 10 millions clients—meaning, by combining forces with Mr. Cooper and integrating its seven million clients, Rocket Companies will represent one in six mortgages across the U.S. The transaction has been unanimously approved by both Rocket Companies’ and Mr. Cooper’s Board of Directors, and is predicted to close in the fourth quarter of 2025 pending shareholder and regulatory approvals.
News of the potential deal has given Mr. Cooper shares a sizable boost. This morning, the company’s stock jumped nearly 25% in premarket trading, and as of this writing, it’s up more than 16%. Meanwhile, Rocket Companies’ shares have taken a hit: The stock is now down by nearly 8%.
Rocket Companies’ mission to become a one-stop-shop
The Mr. Cooper deal is the next step in Rocket Companies’ plan to become a giant one-stop-shop for homebuyers.
Earlier this month, Rocket Companies (the parent company to subsidiaries including Rocket Money and Rocket Mortgage) moved to acquire Redfin in another all-stock transaction valued at $1.75 billion. The deal was designed to incorporate Redfin’s rental listing and real estate agent ecosystem with Rocket Companies—essentially making it easier for new homebuyers to search for a home, connect with a real estate agent, and secure a mortgage all under one corporate roof.
Incorporating Mr. Cooper will allow Rocket Companies to expand its client base and data set as it works to become more of an all-in-one platform. Rocket Companies reported that it expects the acquisition to drive higher loan volume and lower client acquisition costs.
“Mr. Cooper has been on a journey to transform the homeownership experience, and we have built the most advanced servicing platform in the mortgage industry,” Jay Bray, Mr. Cooper Group Chairman and CEO, said in a press release. Bray is set to become president and CEO of Rocket Mortgage. “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,” he added.