Detroit-headquartered Rocket Companies (NYSE: RKT) has announced its acquisition of the Dallas-based mortgage servicing and origination leader Mr. Cooper Group Inc. (NASDAQ: COOP) in an all-stock transaction for $9.4 billion in equity value.
According to the companies, the all-stock transaction is intended to be tax-free to Mr. Cooper shareholders. The transaction represents a $143.33 per share value based on the closing price as of March 28, and a premium of 35% over the volume weighted average price of Mr. Cooper’s common stock for the 30 days ending on that date.
Upon closing of the transaction, it is expected that Mr. Cooper Group’s Chairman and CEO Jay Bray will become President and CEO of Rocket Mortgage, reporting to Rocket CEO Varun Krishna; Dan Gilbert will remain chairman of Rocket Companies. The board of directors of the combined company will consist of 11 members, with nine coming from the board of Rocket and the other two from the board of Mr. Cooper.
This is Rocket’s second acquisition this month, following its earlier announcement of the $1.75 billion purchase of Redfin (NASDAQ: RDFN).
“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” said Krishna. “With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.”
“Mr. Cooper has been on a journey to transform the homeownership experience, and we have built the most advanced servicing platform in the mortgage industry,” added Bray. “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. I am deeply grateful for the dedication of the Mr. Cooper team and look forward to our continued work as we lead our industry into the future of homeownership.”
