Rocket Acquires Mr. Cooper in $9.4B Mega-Deal

Rocket Companies has inked a deal to acquire Mr. Cooper Group Inc., the nation’s leading mortgage servicer, in an all-stock transaction valued at $9.4 billion. The deal merges Rocket’s origination strength with Mr. Cooper’s servicing capabilities, creating a combined $2.1 trillion servicing portfolio that spans nearly 10 million clients—representing one in every six U.S. mortgages.

Under the terms, Mr. Cooper shareholders will receive 11 Rocket shares per Mr. Cooper share, a 35% premium based on the 30-day volume-weighted average price as of last Friday, valuing Mr. Cooper at $143.33 per share. Post-closing, Rocket shareholders will own 75% of the combined entity, with Mr. Cooper shareholders holding 25%.

The deal, expected to close in the fourth quarter, projects $500 million in annual synergies—including $100 million in revenue from enhanced recapture rates and $400 million in cost savings from streamlined operations.

Rocket CEO Varun Krishna emphasized servicing as a “critical pillar of homeownership,” while Mr. Cooper CEO Jay Bray, set to become President and CEO of Rocket Mortgage post-deal, hailed it as forming “the strongest mortgage company in the industry.”

The deal follows Rocket’s $1.75 billion acquisition of Redfin earlier in March, signaling an aggressive push to dominate the end-to-end homeownership experience.

J.P. Morgan Securities LLC is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel to Rocket. Citigroup Global Markets Inc. is acting as financial advisor and Wachtell, Lipton, Rosen & Katz and Bradley Arant Boult Cummings LLP is acting as legal counsel to Mr. Cooper.