Rocket Acquires Mr. Cooper Just Weeks After Buying Redfin, 'Brings Together The Homeownership Experience At Scale'

Rocket Companies Inc. RKT announced on Monday it will acquire Mr. Cooper Group Inc. COOP in an all-stock transaction for $9.4 billion in equity value. The move comes on the heels of Rocket's $1.75 billion acquisition of online real estate broker Redfin Corp. RDFN.

The Details: The acquisition of Mr. Cooper adds seven million clients and 150 million annual interactions to Rocket's analytics, enabling improved AI-powered automation and personalized services. The combined entity will manage a servicing portfolio exceeding $2.1 trillion in unpaid principal balance, covering one in six U.S. mortgages, according to Rocket's press release.

“Servicing is a critical pillar of homeownership — alongside home search and mortgage origination,” said Varun Krishna, Rocket CEO.

“With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise. We look forward to welcoming Mr. Cooper’s nearly seven million clients,” Krishna added.

Post-merger, Mr. Cooper CEO Jay Bray will lead Rocket Mortgage under Rocket Companies CEO Varun Krishna. Rocket's board will expand to 11 members, retaining nine members from Rocket and adding two from Mr. Cooper.

What Else: Earlier in March, Rocket announced it would acquire online real estate platform Redfin to bring homebuyers an end-to-end, online real estate solution from browsing listings to securing a mortgage.

Rocket said on Monday that the acquisitions of Mr. Cooper and Redfin "will bring together the homeownership experience at scale" and allow the company to maximize its AI-powered platform in order to "remove the friction and complexities plaguing today’s homebuying process."

Rocket's acquisitions come in one of the toughest housing markets in history. The median monthly mortgage payment reached a record high last week as interest rates remain high and the median home-sale price continues to rise, according to Redfin.

RKT, COOP Price Action: According to Benzinga Pro, Rocket shares are down 7.71% at $12.03 and Mr. Cooper shares are up 16.82% at $121.95 following the announcement of the merger.

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