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Rocket Companies' Shares Surge 1.8% on Completion of $14.2 Billion Acquisition of Mr. Cooper Group, Creating Largest Independent Mortgage Deal in History.
ByAinvest
Wednesday, Oct 1, 2025 12:39 pm ET1min read
Rocket Companies (RKT) stock is up 1.8% after the company completed its $14.2 billion acquisition of Mr. Cooper Group, creating a combined company with a servicing portfolio of nearly 10 million homeowners. The transaction is the largest independent mortgage deal in history. Shares have been volatile and have had 38 moves greater than 5% over the last year.
Rocket Companies (RKT) stock is up 1.8% after the company completed its $14.2 billion acquisition of Mr. Cooper Group, creating a combined company with a servicing portfolio of nearly 10 million homeowners. The transaction, announced in March and finalized on September 12, 2025, is the largest independent mortgage deal in history [1].The acquisition, valued at 51% more than the initial March valuation of $9.4 billion, saw Rocket Companies paying a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock. Rocket's stock price (NYSE: RKT) has increased by approximately 54% since March, while Mr. Cooper's stock (NASDAQ: COOP) soared by around 68% before closing at more than $210 per share and delisting [2].
The combined company will have a servicing portfolio valued at more than $2 trillion, with Rocket's mortgage production rising to $29 billion from April through June, and Mr. Cooper funding $9.4 billion in Q2 2025. Mr. Cooper's CEO, Jay Bray, will become president and CEO of the Rocket Mortgage brand, reporting to Rocket Companies' CEO Varun Krishna, and joining the board of directors [1].
Rocket Companies aims to lower costs and simplify the homeownership process by integrating Mr. Cooper's servicing strength with Rocket's origination capabilities, AI technology, and established national brand. The acquisition follows Rocket's recent $1.75 billion acquisition of Redfin, which merged Redfin's home search platform with Rocket's mortgage services [1].
The deal closed after Mr. Cooper's subsidiary Nationstar Mortgage Holdings Inc. exchanged $750 million in outstanding 6.500% senior notes due 2029 and $1.0 billion in outstanding 7.125% senior notes due 2032, and concluded a cash tender offer for its outstanding 5.125% senior notes due 2030 and 5.750% senior notes due 2031 [1]. The Federal Housing Finance Agency (FHFA) approved the merger subject to a 20% cap on Fannie Mae and Freddie Mac servicing exposure for the combined company [1].
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