Rocket Companies today announced an agreement to acquire Truebill, the personal finance app, for $1.275 billion in cash. The deal is expected to close before the end of the year, the company said.
The acquisition by Detroit-based Rocket Cos. adds another fintech services business to its platform, which already consists of tech-driven real estate, mortgage and financial services businesses, including Rocket Mortgage, Rocket Homes and Rocket Auto.
Truebill helps consumers manage subscriptions, improve credit scores, track spending and build budgets in an easy-to-use app. The company also renegotiates bills on its clients' behalf, claiming to save them as much as 20% on services, including cable and telephone bills.
Founded in 2015, Truebill has 2.5 million members and has doubled its user base in the last year. The company said it analyzes $50 billion in monthly transaction volume and reports saving 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."
Rocket Cos. said Truebill's ability to leverage technology to constantly improve its clients' financial health adds to Rockets' 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 said, it interacts with tens of millions of potential clients looking to purchase a car, buy or sell a home or to get a mortgage, and 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 said, it 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," said Haroon Mokhtarzada, co-founder and CEO of Truebill. “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.”
Mokhtarzada added, "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."
Rocket Cos. said acquiring Truebill will also add consistent monthly revenue. 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 that it has an industry-best retention rate of 91%. Truebill is on track to generate $100 million in annual recurring revenue, and that is consistently growing, with 2021 revenue more than doubling that of 2020, the companies said.
Truebill was recently ranked 19th on the Deloitte Fast 500 list of the fastest-growing technology and life sciences companies in North America. It was also named the No. 1 Consumer Tech company on The Information's list of the 50 Most Promising Startups.
