Mortgage powerhouse Rocket Companies has officially completed its all-stock takeover of Mr. Cooper Group, sealing a blockbuster $14.2 billion deal that has ballooned in value since its announcement earlier this year.
Stock Surge Lifts Price Tag
The transaction, first unveiled in March at a valuation of $9.4 billion, soared to $14.2 billion as Rocket’s share price surged in the months leading up to closing. Under the terms, Mr. Cooper shareholders received 11 Rocket shares for every share of Mr. Cooper common stock.
“This rise in value reflects the strength of Rocket’s stock performance,” a company representative said, noting that the appreciation automatically increased the implied payout for Mr. Cooper investors.
A Mortgage Giant is Born
The combined entity now commands a servicing portfolio covering nearly 10 million homeowners, instantly transforming Rocket into an even greater titan of the U.S. mortgage market.
“By merging Mr. Cooper’s servicing expertise with Rocket’s origination power, AI-driven technology, and household brand recognition, our aim is to lower costs and simplify the process for millions,” Rocket CEO Varun Krishna said in Wednesday’s announcement.
Wall Street and Legal Heavyweights
Behind the mega-merger stood some of the most influential names in finance and law:
- J.P. Morgan Securities LLC advised Rocket.
- Citigroup Global Markets Inc. represented Mr. Cooper.
- Paul Weiss Rifkind Wharton & Garrison LLP counseled Rocket.
- Wachtell Lipton Rosen & Katz and Bradley Arant Boult Cummings LLP advised Mr. Cooper.
A Market Redrawn
With regulatory approvals cleared and the deal finalized, Rocket’s $14.2 billion bet signals a new chapter in mortgage finance. The merger marks not just consolidation but a recalibration of power, one that could ripple across the housing market for years to come.
