Prnewswireยท2025-03-31 11:00Core Viewpoint - Rocket Companies has announced a definitive agreement to acquire Mr. Cooper Group Inc. in an all-stock transaction valued at $9.4 billion, enhancing its position in the mortgage industry and expanding its client base significantly [1][11]. Company Overview - Rocket Companies is a Detroit-based fintech platform that includes mortgage, real estate, title, and personal finance businesses [25]. - Mr. Cooper Group Inc. is the largest home loan servicer in the U.S., providing customer-centric servicing and origination services primarily for single-family residences [27]. Transaction Details - The acquisition will be executed at an exchange ratio of 11.0 Rocket shares for each share of Mr. Cooper, representing a value of $143.33 per share, which is a 35% premium over the 30-day volume weighted average price [11]. - Upon completion, Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper shareholders will own about 25% [11]. Strategic Benefits - The combined servicing book will exceed $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in America [2][8]. - The transaction is expected to generate annual run-rate revenue and cost synergies of approximately $500 million, contributing to organic revenue growth and increasing operating leverage [7]. - Rocket's industry-leading mortgage recapture capabilities will enhance loan volume and client relationships, lowering client acquisition costs [2][8]. Leadership and Governance - The combined company will be led by an experienced board, with Mr. Cooper's CEO Jay Bray becoming President and CEO of Rocket Mortgage [9]. - The board will consist of 11 members, with 9 from Rocket and 2 from Mr. Cooper [10]. Market Position and Growth Potential - Rocket has ranked 1 in J.D. Power's mortgage servicer study for 10 years and has an 83% recapture rate, which is triple the industry average [8]. - The acquisition will significantly increase Rocket's data set, improving automation, personalization, and efficiency, with insights from nearly 7 million additional clients [8]. Financial Impact - The transaction is expected to be accretive to Rocket's adjusted earnings per share immediately after closing [8]. - The combined servicing portfolio generated $4 billion of servicing fee revenue in 2024, providing enhanced earnings growth opportunities across various interest rate environments [8].