Rocket Companies, Inc. (RKT) entered a merger agreement on March 31, 2025, to acquire Mr. Cooper Group Inc. (COOP) in an all-stock deal valued at about $9.4 billion.
Under the terms of the agreement, Mr. Cooper shareholders will receive a fixed exchange ratio of 11.0 Rocket shares for each share of Mr. Cooper common stock, which represents a $143.33 per share value. The transaction value is at a premium of 37.17% from the stock’s last close.
Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper shareholders will own about 25%. The all-stock transaction is designed to be tax-free for Mr. Cooper shareholders.
As part of the deal, Mr. Cooper will declare and pay a $2.00 per share dividend to its common stockholders upon closing.
Mr. Cooper is the largest home loan servicer in the U.S., providing mortgage servicing, origination, and transaction-based services for single-family residences through its brands, including Mr. Cooper and Xome.
Rocket Companies is a Detroit-based fintech platform specializing in mortgage, real estate, and personal finance, offering services through Rocket Mortgage, Rocket Homes, Rocket Loans, and other digital solutions across the U.S. and Canada.
The deal, expected to close in the fourth quarter of 2025, follows Rocket’s recent $1.75 billion acquisition of real estate listing platform Redfin Corporation (RDFN) earlier this month.
With this acquisition, Rocket will use its advanced mortgage tools to manage a $2.1 trillion loan portfolio, serving nearly 10 million clients—about one in six U.S. mortgages. Rocket wants to enhance the homeownership experience through its acquisitions of Mr. Cooper and Redfin.
“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, ” said Jay Bray, CEO of Mr. Cooper Group.
The deal is expected to generate an additional $100 million in pre-tax revenue by improving recapture rates and integrating Rocket’s title, closing, and appraisal services with Mr. Cooper’s originations. Rocket also anticipates $400 million in pre-tax cost savings through streamlined operations, reduced corporate expenses, and technology investments.
Upon closing, Mr. Cooper Group’s Chairman and CEO, Jay Bray, is expected to become President and CEO of Rocket Mortgage, reporting to Rocket CEO Varun Krishna. Additionally, the combined company’s Board will have 11 members, including 9 from Rocket’s board and 2 from Mr. Cooper’s board.
In this transaction, Citigroup Global Markets provided financial advice to Mr. Cooper Group Inc., while Wachtell, Lipton, Rosen & Katz and Bradley Arant Boult Cummings served as legal advisors. Rocket Companies, Inc. was advised by J.P. Morgan Securities on financial matters and by Paul, Weiss, Rifkind, Wharton & Garrison on legal matters.
Rocket Companies is paying 1.58 times the book value of Mr. Cooper Group.
For more details about this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Mr. Cooper Group Inc. (COOP) by Rocket Companies, Inc. (RKT)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And a lot more.
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Editor’s Note: Baranjot Kaur contributed to this article