On March 31, 2025, Rocket Companies announced a definitive agreement to acquire Mr. Cooper Group Inc., America's largest mortgage servicer, in an all-stock transaction valued at $9.4 billion. This acquisition follows Rocket's recent agreement to purchase Redfin, further solidifying its strategy to create a comprehensive, integrated homeownership platform.
Under the terms of the agreement, Mr. Cooper shareholders will receive a fixed exchange ratio of 11.0 Rocket shares for each share of Mr. Cooper common stock. This represents a value of $143.33 per share based on the closing price as of March 28, 2025, and a 35% premium over Mr. Cooper's 30-day volume weighted average price. The transaction is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.
The combination will bring Rocket's 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. This is expected to drive higher loan volume, foster long-term client relationships, provide greater recurring revenue, and lower client acquisition costs. The deal is projected to generate an additional $500 million in annual pre-tax synergies.
Upon closing, Mr. Cooper Group's Chairman and CEO Jay Bray is expected to become President and CEO of Rocket Mortgage, reporting to Rocket CEO Varun Krishna. Dan Gilbert will remain Chairman of Rocket Companies. The combined company's board will consist of 11 members, with 9 from Rocket and 2 from Mr. Cooper.
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