08:10 AM EDT, 03/31/2025 (MT Newswires) -- (Updates with stock movement for both companies in the last paragraph.)

Rocket Companies ( RKT ) said Monday it agreed to acquire Mr. Cooper Group ( COOP ) in an all-stock transaction valued at $9.4 billion.

Under the agreement, the company said Mr. Cooper's ( COOP ) shareholders would receive 11 Rocket shares for each share of Mr. Cooper's ( COOP ) common stock, representing a value of $143.33 per share, a 35% premium over the 30-day average price.

Upon completion, Rocket said its shareholders will own about 75% of the combined company, while Mr. Cooper's ( COOP ) shareholders will own 25%.

The deal is expected to generate $100 million in additional pre-tax revenue and $400 million in pre-tax cost savings, with Rocket projecting immediate accretion to its adjusted earnings per share, the company said, adding that the transaction is expected to close in Q4.

The company added that Mr. Cooper's ( COOP ) CEO, Jay Bray, will become CEO of Rocket Mortgage, while Rocket's Dan Gilbert will remain chairman.

Shares of Rocket Companies ( RKT ) were down 3.5%, while Mr. Cooper Group ( COOP ) shares were up over 27% in recent Monday premarket activity.