Rocket Companies Closes $14.2 Billion Mr. Cooper Acquisition

Rocket Companies sealed its $14.2 billion takeover of mortgage servicer Mr. Cooper Group, closing a deal that ballooned in value as Rocket’s shares soared since the acquisition was announced in March.

The all-stock transaction, initially valued at $9.4 billion, jumped 51 percent in price after Detroit-based Rocket’s stock climbed nearly 50 percent between late March and this week — outpacing the broader S&P 500 market’s 20 percent gain. The purchase marks one of the largest deals ever for Rocket, Bloomberg first reported.

Rocket has been on a tear this year, announcing its $14 billion acquisition of Coppell-based Mr. Cooper and its $1.75 billion deal for home-search platform Redfin within three weeks of each other. The purchase of Seattle-based Redfin closed in July, solidifying Rocket’s plan to vertically integrate the process of buying, selling and financing homes.

“By combining mortgage servicing and loan origination, along with home search through Redfin, we are paving the path for Americans to own the dream,” CEO Varun Krishna said.

The merger with Mr. Cooper unites two of the country’s biggest mortgage players. Rocket is one of the largest originators in the U.S., while Mr. Cooper ranks as the nation’s top mortgage servicer. Together, they’ll manage more than $2.1 trillion in home loans — roughly one in every six mortgages nationwide. Mr. Cooper’s operations and branding will fold into the Rocket name, the companies said.

Post-merger, Rocket shareholders will hold 75 percent of the combined company, with Mr. Cooper shareholders owning the rest. Mr. Cooper CEO Jay Bray will become president of Rocket Mortgage, reporting directly to Krishna.

Despite the bullish expansion, Rocket hasn’t escaped the industry’s cost pressures. The company cut about 2 percent of its workforce in July, soon after closing the Redfin deal, citing redundant roles across overlapping divisions.

Rocket’s move to dominate every stage of the housing market mirrors strategies by tech and financial giants chasing end-to-end control of consumer transactions.

— Eric Weilbacher