The financial technology platform Rocket Companies — , which includes real estate, title and personal finance businesses, and mortgages under its umbrella — has acquired the mortgage company Mr. Cooper Group Inc. in an all-stock deal valued at $9.4 billion. The acquisition of Mr. Cooper by Rocket creates an entity that will represent nearly 20% of all mortgages in the United States.
Per AP News: Rocket said Monday that the purchase of Mr. Cooper Group Inc. will create a business representing one in every six mortgages in the United States and give it almost 7 million additional clients. The deal will boost loan volumes, while lowering client acquisition costs; with Rocket stating in a press release that “it will bring its industry-leading mortgage recapture capabilities to a combined servicing book of $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in America.”
The move comes just weeks after Rocket acquired real estate listing company Redfin in an all-stock deal worth $1.75 billion.. The acquisitions of Mr. Cooper and Redfin will allow Rocket to speed up its AI-powered platform “and remove the friction and complexities plaguing today’s homebuying process,” according to the release.
The combined company will see Mr. Cooper Group Chairperson and CEO Jay Bray become President and CEO of Rocket Mortgage, who will work under Rocket CEO Varun Krishna. Bray said in a statement: “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.”
Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper stockholders will own about 25%. The combined company’s board will have 11 members, with nine being from Rocket and two from Mr. Cooper.
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