Rocket Companies (RKT) CEO Varun Krishna has made a significant spring acquisition spree, with the company set to acquire mortgage servicer Mr. Cooper (COOP) for $9.4 billion in stock. The deal is expected to generate annual revenue and cost synergies of around $500 million and is seen as accretive to Rocket’s business upon closing later this year.
The combined company will service more than $2.1 trillion in loan volume, serving 7 million clients. Krishna aims to build an integrated homeownership platform, providing a seamless experience for clients from home search to origination to servicing.
Rocket has already made another significant acquisition earlier this month, purchasing Redfin (RDFN) for $1.75 billion. The deals have seen Rocket’s stock price fall, but Krishna remains optimistic about the company’s prospects.
Krishna attributes the company’s success to its vision of building a generational company and its ability to capitalize on positive trends in the housing market. Despite elevated mortgage rates, sales of new homes rose 1.8% in February, and Krishna sees “green shoots” of improvement, including increasing inventory and more homes selling at or below list price.
The company’s mortgage origination business is expected to be a key driver, with revenues projected to reach $1.9 trillion this year, up 10-15% from last year. With the acquisition, Rocket aims to build a comprehensive platform for homeownership, positioning itself well for long-term success.
Source: https://finance.yahoo.com/news/rocket-ceo-discusses-11-billion-acquisition-spree-and-impact-of-trump-tariffs-on-housing-181549250.html