Rocket's Strategic $9.4 Billion Acquisition of Mr. Cooper To Strengthen Its Mortgage Clout

Rocket Mortgage has announced its acquisition of rival Mr. Cooper in an all-stock transaction valued at $9.4 billion, following on the heels of its recent purchase of the real estate listing platform, Redfin.

According to Rocket Cos., integrating Mr. Cooper Group Inc. will significantly enhance its market position, processing one out of every six mortgages in America and expanding its client base by nearly 7 million. This strategic move is expected to increase loan volumes while simultaneously reducing the costs associated with acquiring new clients.

“Uniting Mr. Cooper with Rocket will forge the industry’s most robust mortgage enterprise, delivering a comprehensive homeownership journey powered by leading-edge technology and a commitment to exceptional customer service,” stated Jay Bray, Mr. Cooper’s Chairman and CEO, who is set to become the new President and CEO of Rocket Mortgage.

The U.S. housing sector has been facing challenges for years, with both potential buyers and sellers impacted by rising mortgage rates and home prices, effectively making housing unaffordable for a significant portion of the population.

Rocket’s acquisition spree aims to simplify the home buying process, promising a unified shopping experience for stressed-out aspiring homeowners.

Bray will be reporting to Varun Krishna, the CEO of Rocket Cos.

Mr. Cooper’s shareholders will receive a set exchange rate of 11 Rocket shares for every Mr. Cooper common stock share. The company is headquartered in Coppell, Texas.

Upon completion of the merger, Rocket’s shareholders will hold about 75% of the consolidated organization, leaving Mr. Cooper’s investors with approximately 25%. The governing board will consist of 11 members, predominantly from Rocket, with nine representatives, alongside two from Mr. Cooper.