Mr Cooper shares jump on $9bn takeover offer from Rocket

(Sharecast News) - Shares in Mr Cooper surged in pre-market trade on Monday after fintech platform Rocket Companies launched a $9.4bn takeover offer for the American mortgage company. The deal will create a company with nearly 10m clients and boast a combined servicing book of $2.1trn, representing one in every six mortgages in the US.

In a statement, Rocket said the merger would support higher loan volumes and client relationships, increase recurring revenue and lower client acquisition costs.

Rocket is a Detroit-based fintech platform which operates in the mortgage, real estate, title and personal finance markets. Earlier this month, Rocket Mortgage announced the acquisition of residential real estate brokerage Redfin for $1.75bn.

The company said the acquisition of Mr Cooper would allow it to ramp up its AI-powered platform to "remove the friction and complexities plaguing today's homebuying process".

Commenting on the deal, Mr Cooper's chair and chief executive Jay Bray said: "By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry, offering an end-to-end homeownership experience backed by leading technology and grounded in customer care."

Mr Cooper was up 23.5% at $129 ahead of the opening bell, while Rocket was trading 5.6% lower at $12.30.