Rocket Companies ( RKT ) Inc announced on Monday an all-stock acquisition of Mr. Cooper Group Inc. ( COOP ) in a deal valued at $9.4 billion.

Under the terms of the agreement, Mr. Cooper ( COOP ) shareholders will receive 11.0 Rocket shares for each Mr. Cooper ( COOP ) share, valuing the deal at $143.33 per share, a 35% premium over the stock’s 30-day volume-weighted average.

The deal is structured as a tax-free transaction for Mr. Cooper ( COOP ) shareholders and includes a $2.00 per share dividend before closing.

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With this acquisition, Rocket Companies ( RKT ) will substantially grow its mortgage servicing portfolio to exceed $2.1 trillion, encompassing almost 10 million clients. This expansion accounts for roughly one in six mortgages across the U.S.

Rocket’s acquisition of Mr. Cooper ( COOP ) follows its recent agreement to acquire digital brokerage platform Redfin Corp , furthering its goal of streamlining the homeownership experience.

By integrating Mr. Cooper’s servicing expertise with Rocket’s customer acquisition strategies, the company expects to generate $500 million in annual revenue and cost synergies.

By acquiring Mr. Cooper ( COOP ), Rocket will gain valuable insights from nearly 7 million additional clients and 150 million yearly customer interactions. The company intends to use this extensive dataset to improve automation, tailor experiences, and boost efficiency within its AI-driven mortgage platform.

The company anticipates $400 million in cost savings by streamlining operations and reducing corporate expenses.

Upon closing, Mr. Cooper’s Chairman and CEO, Jay Bray, will transition to the role of President and CEO of Rocket Mortgage, reporting to Rocket’s leadership.

Rocket held $1.3 billion in cash and equivalents as of December 31, 2024.

The transaction has been unanimously approved by both companies’ boards and is expected to close in fourth-quarter 2025, pending regulatory approvals and shareholder consent.

Price Action: RKT shares traded lower by 9.40% at $11.81, while COOP is up 14.4% at $119.50 at last check Monday.

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