Rocket Mortgage acquiring Mr. Cooper in $9.4 billion all-stock deal to become mortgage industry powerhouse.

From Yahoo Finance: 2025-03-31 07:46:00

Rocket Mortgage is purchasing Mr. Cooper in a $9.4 billion all-stock deal, aiming to create a powerhouse in the mortgage industry. The acquisition will bring almost 7 million clients to Rocket, boosting loan volumes and lowering client acquisition costs.

The U.S. housing market has been struggling, with high mortgage rates and prices making homes unaffordable for many. Rocket’s acquisition spree, including Redfin earlier this month, aims to simplify the homebuying process.

Rocket Mortgage CEO Varun Krishna will oversee Mr. Cooper Chairman Jay Bray, who will become president and CEO of Rocket Mortgage. Shareholders of Mr. Cooper will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock.

Rocket shareholders will own 75% of the combined company, with Mr. Cooper stockholders owning 25%. The board will consist of 11 members, with nine from Rocket and two from Mr. Cooper. Rocket previously acquired Redfin for $1.75 billion.

Redfin, founded in 2004, offers over 1 million for sale and rental listings. The National Association of Realtors reported a 4.2% increase in existing home sales in February, citing easing mortgage rates and more properties on the market as contributing factors.

Read more: Mortgage company Rocket buying Mr. Cooper in all-stock deal valued at $9.4 billion