Rocket Companies is acquiring mortgage rival Mr. Cooper Group in an all-stock transaction valued at $9.4 billion, the Detroit-based firm announced Monday, marking its second major acquisition this month and positioning itself to hold one in every six mortgages in the U.S.
The deal adds nearly 7 million customers to Rocket's portfolio and comes less than three weeks after it agreed to buy real estate listing platform Redfin in a $1.75 billion stock deal. Rocket said the latest transaction will expand loan volume, create recurring revenue streams, and reduce client acquisition costs.
"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," said Jay Bray, Chairman and CEO of Mr. Cooper. Bray will become President and CEO of Rocket Mortgage upon deal completion and report to Rocket Cos. CEO Varun Krishna.
Mr. Cooper shareholders will receive 11 Rocket shares for each share they hold. After the merger, Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper shareholders will control about 25%. The board will consist of 11 members, including nine from Rocket and two from Mr. Cooper.
Rocket said the transaction is expected to be immediately accretive to its adjusted earnings per share and will generate an additional $100 million in pre-tax revenue, with an anticipated $400 million in cost synergies through streamlined operations and reduced corporate and tech expenses. The deal is expected to close in the fourth quarter of 2025.
Mr. Cooper shares rose 27% to $132.10 in premarket trading Monday, though they remained below Rocket's offer price of $143.33. Rocket shares dropped 4.4%.
Rocket's aggressive acquisition strategy comes as the U.S. housing market continues to navigate high mortgage rates and low affordability. Existing home sales rose 4.2% in February, according to the National Association of Realtors, reaching a seasonally adjusted annual rate of 4.26 million. However, overall home sales remain depressed compared to pre-2022 levels due to elevated borrowing costs.
