Rocket Companies Inc (NYSE:RKT), the largest mortgage lender in the United States, will acquire Mr. Coooper Group (NASDAQ:COOP), the nation’s leading mortgage servicer, in an all-stock deal valued at $9.4 billion.
The combined entity will manage more than $2.1 trillion in unpaid principal balances across nearly 10 million customers, equal to one in six US mortgages.
Rocket will gain nearly 7 million additional clients and 150 million annual customer interactions as a result of the acquisition.
The merger is expected to generate $500 million in annual pre-tax synergies through operational efficiencies and technology investments while being immediately accretive to Rocket's earnings per share.
Mr Cooper shareholders will receive 11 Rocket shares per share of Mr Cooper, representing a per share value of $143.33 and a 35% premium over its recent average share price.
Rocket shareholders will hold 75% of the combined entity, while Mr Cooper shareholders will own 25%.
Jay Bray, CEO of Mr Cooper, will become president and CEO of Rocket Mortgage upon the completion of the deal, reporting to Rocket CEO Varun Krishna.
“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” Krishna said in a statement.
“With the right data and AI infrastructure we will deliver the right products at the right time.”
Bray added: “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.”
The acquisition is expected to close in the fourth quarter of 2025.
Rocket shares fell on the announcement, down 9.5% at about $12 on Monday morning, while Mr Cooper shares surged almost 17% to $122.