Mr Cooper Stock Surges 26% Pre-Market After Rocket Companies Agrees To Acquire It For $9.4B: Retail’s Not Impressed Yet
Under the deal terms, Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock.
FollowShares of fintech platform Rocket Companies (RKT) fell over 3% in Monday’s pre-market after the company said it would acquire Mr. Cooper Group Inc. (COOP) in an all-stock transaction for $9.4 billion in equity value.
Following the announcement, COOP shares rallied over 26% in Monday’s pre-market.
Under the deal terms, Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock.
Once the transaction closes, Rocket shareholders will own approximately 75% of the combined company on a fully diluted basis, while Mr. Cooper shareholders will own approximately 25%.
The deal terms represent a $143.33 per share value based on the closing price as of March 28, 2025, and a 35% premium over the volume-weighted average price (VWAP) of Mr. Cooper’s common stock for the 30 days ending March 28, 2025.
Rocket Companies said that upon closure, Mr. Cooper Group’s Chairman and CEO, Jay Bray, will become President and CEO of Rocket Mortgage, while Dan Gilbert will remain Chairman of Rocket Companies.
Rocket Companies also highlighted that the combined servicing portfolio will exceed $2.1 trillion in unpaid principal balance, or one in every six mortgages in America.
The company said it will also gain an understanding of nearly seven million additional clients and 150 million annual customer interactions.
Rocket Companies expects to generate an annual run-rate revenue and cost synergies of approximately $500 million, contributing to organic revenue growth while increasing operating leverage and maintaining significant capital and liquidity.
On Stocktwits, retail sentiment for both companies continued to trend in the ‘bearish’ territory.
RKT’s Sentiment Meter and Message Volume as of 8:09 a.m. ET on March 31, 2025 | Source: Stocktwits
COOP’s Sentiment Meter and Message Volume as of 8:09 a.m. ET on March 31, 2025 | Source: Stocktwits
Rocket Companies’ shares have gained over 20% in 2025, while Mr. Cooper shares rose over 11% in the same period.
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