Rocket Companies announced a $9.4 billion all-stock acquisition agreement with mortgage servicer Mr. Cooper Group Inc.
The transaction is based on an 11.0x exchange ratio.
With this acquisition, Rocket will bring its 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, according to a release.
The acquisition of Mr. Cooper, along with the recent addition of Redfin will allow Rocket to bring together the homeownership experience at scale and accelerate its artificial intelligence (AI)-powered platform, according to a release.
“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” Rocket CEO Varun Krishna said in a release. “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.”
Upon closing of the transaction, it is expected Mr. Cooper Group Chairman and CEO Jay Bray will become president and CEO of Rocket Mortgage, reporting to Krishna. Dan Gilbert will remain chairman.
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