Rocket Companies in Detroit has agreed to buy Mr. Cooper Group in Dallas for $9.4 billion in stock.
Rocket said in a press release that the deal will allow it to accelerate its artificial-intelligence-powered platform and “remove the friction and complexities plaguing today’s home buying process.”
The deal is expected to close in the fourth quarter, at which point Mr. Cooper will declare and pay a dividend of $2 a share.
“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” Varun Krishna, Rocket’s CEO, said in the release. “With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.”
Jay Bray, Mr. Cooper’s chairman and CEO, will become president and CEO of Rocket Mortgage. Two Mr. Cooper directors will join Rocket’s board.
J.P. Morgan Securities and Paul, Weiss, Rifkind, Wharton & Garrison advised Rocket. Citigroup Global Markets; Wachtell, Lipton, Rosen & Katz; and Bradley Arant Boult Cummings advised Mr. Cooper.