Rocket Companies, (NYSE: RKT) the Detroit-based platform company consisting of tech-driven real estate, mortgage and financial services businesses – including Rocket Mortgage, Rocket Homes and Rocket Auto – today announced it has entered into an agreement to acquire Truebill, the leading personal finance app that helps consumers manage every aspect of their financial lives, for $1.275 billion in cash.
Truebill has quickly become the choice for consumers looking to live their best financial lives by managing subscriptions, improving credit scores, tracking spending and building budgets in a simple, easy-to-use app. The company also renegotiates bills on its clients’ behalf – saving them as much as 20 percent on services including cable and telephone bills.
Founded in 2015, Truebill currently has 2.5 million members, and has doubled its user base in just the last year. The company currently analyzes $50 billion in monthly transaction volume and has saved consumers more than $100 million since its founding.
“We are very impressed with what Truebill has created – providing a simple, intuitive client experience to help its users save significant money,” said Jay Farner, CEO of Rocket Companies. “The company is a perfect fit for the Rocket platform. Truebill’s work helping Americans keep track of their finances and providing guidance that leads to better financial outcomes follows the same philosophy as Rocket Companies – leveraging the power of technology to remove the friction from complex transactions – and applies it to everyday life.”
Truebill’s ability to leverage technology to constantly improve their clients’ financial health adds to Rocket Companies’ end-to-end real estate and home financing platform and quickly growing automotive sales marketplace – bringing Rocket Companies closer to the goal of creating a centralized destination for consumers to manage their entire financial lives.
Each year, Rocket Companies interacts with tens of millions of potential clients looking to purchase a car, buy or sell a home or to get a mortgage. Most of them are simply investigating their options and are not ready to transact. With the addition of Truebill’s financial wellness services, Rocket Companies will have both a new organic growth opportunity and a significant channel to nurture clients – keeping them engaged in the company’s FinTech ecosystem by providing value between the large financial transactions that Rocket Companies is known for.
“What my co-founders and I originally created as a subscription cancelation app has become so much more. Now, millions of Americans are trusting us to help them take control of their financial lives. By joining forces with the Rocket FinTech powerhouse, we will be able to extend our reach and seamlessly connect consumers with even more services,” said Haroon Mokhtarzada, co-founder and CEO of Truebill. “The synergy between Truebill and the Rocket Companies platform could not be stronger, especially when you consider the importance of home ownership as the centerpiece of a healthy financial life.”
This new line of business will also add consistent monthly revenue for Rocket Companies. Today, monthly payments made by clients to the company’s mortgage servicing operations generate $1.3 billion in servicing income on an annualized basis. Rocket Companies boasts 2.5 million serviced clients and has an industry-best retention rate of 91 percent. Truebill is on track to generate $100 million in annual recurring revenue. That number is consistently growing, with 2021 revenue more than doubling that of 2020.
The deal is expected to close prior to the end of the year.