Detroit-based Rocket Companies, the nation’s largest mortgage lender, has announced a landmark acquisition of Texas-based Mr. Cooper Group, the largest mortgage servicer in the United States, in an all-stock transaction valued at $9.4 billion.
The deal, unveiled on March 31, 2025, is set to reshape the mortgage industry by creating a powerhouse that services over $2.1 trillion in loans—equivalent to one in every six mortgages nationwide.
Under the terms of the agreement, Mr. Cooper shareholders will receive 11 Rocket shares for each share of Mr. Cooper stock, valuing Mr. Cooper shares at approximately $143.33—a 35% premium over its 30-day average price leading up to March 28, 2025.
Rocket shareholders will hold 75% ownership of the combined company, while Mr. Cooper shareholders will retain the remaining stake.
The acquisition is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals.
Jay Bray, Chairman and CEO of Mr. Cooper Group, will transition to President and CEO of Rocket Mortgage, reporting directly to Rocket Companies CEO Varun Krishna. Dan Gilbert will remain Chairman of Rocket Companies.
“This merger forms the strongest mortgage company in the industry,” Bray stated. “It combines advanced technology with exceptional customer care to deliver an end-to-end homeownership experience.”
Rocket CEO Varun Krishna emphasized the strategic importance of integrating data and AI capabilities from both companies to enhance automation and personalization for their nearly 10 million combined clients.
The transaction is projected to generate $500 million in annual synergies—$100 million in additional revenue and $400 million in cost savings—through streamlined operations and improved servicing efficiencies.
The combined entity aims to leverage its expanded portfolio and AI-powered platform to boost loan volumes while reducing client acquisition costs.
Rocket’s acquisition of Mr. Cooper follows its recent purchase of real estate platform Redfin earlier this month, signaling its ambition to become a one-stop shop for homeownership services.
Shares of Mr. Cooper surged nearly 25% following the announcement, reflecting investor optimism about the deal’s potential to transform the mortgage landscape.
With this acquisition, Rocket Companies solidifies its position as an industry leader capable of navigating economic challenges while delivering innovative solutions for homeowners across America.
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