FinTech: Rocket Companies Buys Personal Finance App Truebill For $1.275B
Truebill helps consumers manage finances including subscriptions, credit scores, spending, and budgets.
Rocket Companies (NYSE: RKT) announced today its acquisition of Truebill, the personal finance app, for $1.275 billion in cash. The deal will bring Truebill’s 2.5 million members as potential clients to the Rocket platform, and add $100 million in annual recurring revenue to Rocket’s $1.3 billion of annualized servicing fee income. (Yahoo Finance)
Founded in 2015, Truebill helps its 2.5 milllion members’ with their financial lives, analyzing $50 billion in monthly transaction volume to track credit scores, manage subscriptions, and watch over spending and budgets. It claims also to renegotiate bills on its clients’ behalf – saving them as much as 20% on services including cable and telephone bills.
To date, Truebill has helped its members save $100 million.
Truebill 2021 revenue is more than double that of 2020, while it also doubled its user base over the course of the last 12 months.
“The company is a perfect fit for the Rocket platform,” said Jay Farner, CEO of Rocket Companies. “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.”
Farner said Truebill provided a simple, intuitive client experience to help its users save significant money.
Truebill raised $45 million in June at a valuation of $500 million.
Comprising Rocket Mortgage, Rocket Homes and Rocket Auto, Rocket Companies is a Detroit-based platform company in the businesses of tech-driven real estate, mortgage and financial services. Typically, its customers are looking to purchase a car, buy or sell a home, or to get a mortgage.
“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,” Rocket said in a statement.
Given the high valuations that fintechs command, the transaction is also likely to help Rocket’s own market valuation – its shares have declined 23% year-to-date, according to Yahoo Finance Plus data, compared to a 23% gain for the S&P 500.
Related Story: FinTech – Deal-Making In The LatAm Payments Space
Latest Alternative Investment News
Proxy advisory firm Institutional Investor Advisory Services India Ltd. (IiAS) has issued a note ahead of PayTM’s (NSE: PAYTM) annual shareholders’ meeting on August 19 calling for the replacement of…
Lockheed Martin (NYSE: LMT) and its venture finance arm Lockheed Martin Ventures plans to boost the latter’s investment outlay from $200 million to $400 million.
PicPay, the well-known Brazilian payment app, has got its shoe in the crypto door in partnership with Paxos, a leading regulated blockchain infrastructure company. Picpay is opening crypto trading services…
BT (LON: BT.A), the telecom major, announced that Barclaycard Payments had joined its partnership network seeking to help the growth of UK microbusinesses. BT customers with 0-5 employees would get…