U.S.-based fintech firm Rocket Companies announced on Monday its plan to acquire mortgage servicing provider Mr. Cooper Group in a $9.4 billion deal, marking its second major acquisition this month as it strengthens its end-to-end digital mortgage ecosystem.
The transaction is expected to bring in approximately 7 million new customers, expand lending volume, and increase recurring revenue. Rocket also noted that the acquisition would reduce customer acquisition costs by leveraging operational scale.
Earlier in the month, Rocket acquired real estate listing platform Redfin in a $1.75 billion stock transaction, underscoring its strategy to consolidate the real estate and mortgage value chain under a unified online platform.
The Mr. Cooper acquisition is projected to deliver $100 million in pre-tax income and generate up to $400 million in cost synergies through operational optimization, streamlined corporate functions, and increased investment in technology infrastructure.
Upon closing, Jay Bray, current CEO of Mr. Cooper, will assume leadership of Rocket Mortgage, the company’s flagship mortgage lending division.
