Mr. Cooper Set for $9.4B Acquisition by Rocket
Deal News | Mar 31, 2025 | Wachtell, Lipton, Rosen & Katz
Mr. Cooper Group Inc. and Rocket Companies, Inc. have reached a definitive agreement whereby Rocket will acquire Mr. Cooper in an all-stock transaction valued at $9.4 billion, as announced on March 31, 2025. The terms dictate that Mr. Cooper's shareholders will obtain 11 shares of Rocket common stock for each share they hold in Mr. Cooper, translating into them owning roughly 25% of the newly combined entity. Ahead of finalizing the acquisition, Mr. Cooper will distribute a $2 dividend per share. This significant strategic move—advised by law firm Wachtell, Lipton, Rosen & Katz—marks a pivotal step in both companies' futures, enhancing their market presence and operational scale. The deal underscores Rocket's aggressive growth strategy and potentially reshapes the competitive landscape in the industry.
Sectors
- Finance and Banking
- Mergers and Acquisitions
Geography
- United States – Both Mr. Cooper Group Inc. and Rocket Companies, Inc. are based in the United States, making it the primary geographical frame of reference for this transaction.
Industry
- Finance and Banking – The transaction involves large financial entities and affects the stock market, indicative of the Finance and Banking sector.
- Mergers and Acquisitions – The acquisition of Mr. Cooper by Rocket represents significant activity in the Mergers and Acquisitions industry.
Financials
- $9.4 billion – Total valuation of the acquisition deal for Mr. Cooper by Rocket.
- $143.33 per share – The valuation per share of Mr. Cooper Group stock in the transaction.
- $2 per share – The dividend Mr. Cooper plans to pay prior to closing the acquisition.
- 11 shares of Rocket per 1 share of Mr. Cooper – The stock exchange ratio for Mr. Cooper shareholders as part of the deal.
- 25% – The percentage of the combined company's ownership that Mr. Cooper shareholders will hold post-transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mr. Cooper Group Inc. | Target | Company | A company involved in mortgage servicing, targeted for acquisition. |
| Rocket Companies, Inc. | Bidding Company | Company | A company active in personal financing, mortgages, and real estate, acquiring Mr. Cooper Group in this transaction. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | The law firm advising on the acquisition transaction. |