A spike in the mortgage giant's stock price over the past six months pushed the deal cost higher
Rocket Companies’ blockbuster move to purchase mortgage servicer Mr. Cooper has gone ahead, with the deal valued at $14.2 billion – 51% higher than when it was initially inked.
The price soared thanks to a jump in Rocket share values over the past six months, meaning the all-stock deal closed at a much higher cost than the original $9.4 billion valuation.
The move was first announced in March, one of two massive acquisitions by the Detroit-based lender along with its deal to purchase real estate listings platform Redfin.
The Redfin move, valued at $1.75 billion, closed at the beginning of July, adding a platform with more than a million listings and a brokerage with over 2,000 agents to Rocket’s roster.
Rocket said the Mr. Cooper deal will allow the two companies to access a combined servicing portfolio of nearly 10 million homeowners, uniting the US’s biggest mortgage originator and servicer. Since the end of March, Rocket stock has spiked by nearly 50% in value.
Longstanding Mr. Cooper chief executive officer Jay Bray will become president and chief executive officer of Rocket Mortgage, the company said, reporting to Rocket Companies CEO Varun Krishna. Mr. Cooper and its servicing functions will be merged into the Rocket brand.
Krishna, who said the companies aimed to lower costs and simplify the mortgage process through the deal, spoke Tuesday at a Rocket Pro event in Detroit and underlined the importance of the mortgage broker community to the company’s future.
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