Rocket Companies (RKT) said Monday it agreed to acquire Mr. Cooper Group (COOP) in an all-stock transaction valued at $9.4 billion.
Under the agreement, the company said Mr. Cooper's shareholders would receive 11 Rocket shares for each share of Mr. Cooper's common stock, representing a value of $143.33 per share, a 35% premium over the 30-day average price.
Upon completion, Rocket said its shareholders will own about 75% of the combined company, while Mr. Cooper's shareholders will own 25%.
The deal is expected to generate $100 million in additional pre-tax revenue and $400 million in pre-tax cost savings, with Rocket projecting immediate accretion to its adjusted earnings per share, the company said, adding that the transaction is expected to close in Q4.
The company said that Mr. Cooper's CEO, Jay Bray, will become CEO of Rocket Mortgage, while Rocket's Dan Gilbert will remain chairman.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.