Rocket Companies, the parent company behind Rocket Mortgage, is gobbling up market share in the real estate trades. The firm on Monday announced it would buy rival Mr. Cooper in an all-stock transaction for $9.4 billion, just weeks after purchasing Redfin. COOP stock spiked on the news, while RKT shares retreated.
Rocket said the Mr. Cooper acquisition adds about 7 million clients, while the combined portfolio will represent one in six mortgages in the U.S. The deal should also boost loan volume and recurring revenue, while lowering client acquisition costs, according to Rocket.
The transaction is expected to immediately increase Rocket's adjusted earnings per share after closing. Rocket expects the deal to generate $100 million in pretax revenue, with $400 million in pretax cost savings from streamlining operations.
Under terms of the deal, Mr. Cooper shareholders will receive 11 Rocket shares for each share of COOP stock that they own. That represents a value of $143.33 per share based on the March 28 closing price. Rocket shareholders will own about 75% of the combined company. Mr. Cooper shareholders will own about 25%. Mr. Cooper will also declare and pay a dividend of $2 per share once the transaction is completed.
The boards for Rocket and for Mr. Cooper approved the deal. They expect it to close in Q4 2025.
Once the deal closes, Mr. Cooper CEO Jay Bray will serve as CEO of Rocket Mortgage, the statement said. Bray will report to Varun Krishna, CEO of Rocket. Dan Gilbert will remain the chairman for Rocket Cos.
The deal comes after Rocket on March 10 announced plans to acquire the real estate data and services brand Redfin for $1.75 billion.
Rocket, Mr. Coop Stock
COOP stock soared 14.5% at Monday, launching shares to a record high. Mr. Cooper had advanced almost 25% this year.
RKT stock fell 7.5% Monday. Rocket shares have trended lower the past three weeks. Still, RKT is up about 7% in 2025.
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