R
ocket Companies is making a bold move to capitalize on the US housing market's resurgence, announcing a $9.4 billion acquisition of Mr. Cooper Group. This strategic deal marks Rocket's second major transaction this month, following its all-stock purchase of Redfin for $1.75 billion earlier in August.

    The US housing market is experiencing a welcome rebound, driven by improved inventory levels and declining long-term bond yields. This shift has brought potential buyers back to the market after years of being priced out by high interest rates and prices. As a result, Rocket is poised to benefit from increased demand for its mortgage services.

    Under the terms of the deal, Rocket will offer 11 shares for each Mr. Cooper common stock held, valuing each share at $143.33 based on Friday's closing price – a premium of approximately 37%. The acquisition is expected to add nearly 7 million clients, boost loan volume, and drive recurring revenue while reducing client acquisition costs.

    The deal is projected to generate an additional $100 million in pre-tax revenue and potentially save $400 million through streamlined operations, corporate expenses, and technology investments. With the transaction set to close in the fourth quarter, it's expected to immediately boost Rocket's adjusted earnings per share.

    Following the completion of the deal, Mr. Cooper CEO Jay Bray will take the reins as head of Rocket Mortgage, the company's flagship business. This strategic move positions Rocket for continued growth and success in the US housing market.