Rocket Companies to acquire Mr Cooper in $9.4 billion all-stock deal

Trending

Bank Holidays April

Bank Holidays List

Stock market holiday

Unified Pension Scheme

Top Stock Recommendations

Hurun Rich List

World Richest Persons

Bank Holidays April

Bank Holidays List

Stock market holiday

Unified Pension Scheme

Top Stock Recommendations

Hurun Rich List

World Richest Persons

Bank Holidays April

Bank Holidays List

Stock market holiday

Unified Pension Scheme

+Text Size

Small
Medium
Large

Rocket Mortgage is set to acquire Mr. Cooper in an all-stock deal valued at $9.4 billion, soon after acquiring Redfin. The merger will handle one in six US mortgages, adding 7 million clients to Rocket’s portfolio. Jay Bray will become President and CEO of the combined company, expected to boost loan volumes and reduce customer acquisition costs.

Rocket Mortgage is acquiring competitor Mr. Cooper in an all-stock deal valued at $9.4 billion, shortly after its acquisition of real estate listing company Redfin.

The merger will create a combined entity handling one in every six mortgages in the US, adding nearly 7 million new clients to Rocket’s portfolio. This strategic move is expected to increase loan volumes and lower customer acquisition costs, news agency AP reported.

Jay Bray, Chairman and CEO of Mr. Cooper, who will become President and CEO of Rocket Mortgage, stated, “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.”

The US housing market has been in a slump, with soaring mortgage rates and high prices putting homeownership out of reach for many. Companies like Rocket are responding by building a more comprehensive, one-stop experience for potential homebuyers.

Under the terms of the deal, Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock. Upon completion, Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper stockholders will own 25%. The combined company’s board will consist of 11 members, with nine from Rocket and two from Mr. Cooper.

Earlier this month, Rocket also announced its acquisition of Redfin in an all-stock deal valued at $1.75 billion. Redfin, founded in 2004, offers over 1 million for-sale and rental listings on its platform.

The National Association of Realtors reported a 4.2% increase in existing home sales in February, partly driven by easing mortgage rates and more properties available on the market. However, home sales began to decline in 2022 when mortgage rates started rising from pandemic-era lows, and last year, sales of previously owned US homes fell to their lowest level in nearly 30 years

Stay informed with the latest business news, updates on bank holidays and public holidays.

Boost your business with AI. Join this course by GrowFast and unlock the power of artificial intelligence. Sign up now!

TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.Read More

End of Article