10:56 AM EDT, 03/31/2025 (MT Newswires) -- Rocket Companies ( RKT ) agreed to acquire home loan service provider Mr. Cooper Group ( COOP ) in a $9.4 billion all-stock deal that is expected to boost Rocket's mortgages business.

Mr. Cooper's ( COOP ) investors will receive 11 Rocket shares for each share owned, reflecting a consideration of $143.33 apiece, the companies said in a joint Monday statement. That price represents a 35% premium over Mr. Cooper's ( COOP ) volume-weighted average price for 30 days up to last Friday.

"By combining Mr. Cooper ( COOP ) 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," Mr. Cooper ( COOP ) Chief Executive Jay Bray, who will head Rocket Mortgage, said in the statement.

The deal, which will create a combined entity servicing more than $2.1 trillion in loan volume, is expected to close in the fourth quarter. "Ultimately, this combination drives higher loan volume and long-term client relationships -- while providing greater recurring revenue and lowering client acquisition costs," according to the joint statement.

The announcement comes three weeks after Rocket disclosed a $1.75 billion deal to acquire real-estate brokerage Redfin (RDFN).

Mr. Cooper's ( COOP ) shares jumped 16% intraday Monday, while Rocket's were down 7.5%. Mr. Cooper ( COOP ), which has nearly 7 million clients, will pay a $2 per share dividend when the deal closes. Upon completion, Rocket's shareholders will own about 75% of the combined company on a pro forma basis for the Redfin transaction. Mr. Cooper's ( COOP ) shareholders will own the remaining 25%.

The deal is expected to generate $100 million in additional pre-tax revenue and $400 million in pre-tax cost savings, with an expected immediate accretion to Rocket's adjusted earnings per share.

"Servicing is a critical pillar of homeownership -- alongside home search and mortgage origination," Rocket CEO Varun Krishna said. "With the right data and (artificial intelligence) infrastructure, we will deliver the right products at the right time."

Last month, Mr. Cooper ( COOP ) reported 2024 EPS of $10.19 and revenue of $2.23 billion.

Price: 12.01, Change: -1.03, Percent Change: -7.87