Rocket Companies Expands Fintech Presence With $1.27B Truebill Acquisition - Rocket Companies (NYSE:RKT)

Rocket Companies Inc (NYSE:RKT) has announced a $1.275 billion buyout of a leading personal finance app.

What Happened? Rocket Is acquiring Truebill, an app that helps users manage their personal finances, including subscriptions, credit scores, spending and budgeting. Truebill also negotiates bills on behalf of its customers, saving them up to 20% on monthly payments.

Why It’s Important: Truebill has 2.5 million members and has reportedly doubled its user base over the past three years. Truebill reportedly analyzes $50 billion in transaction volume on a monthly basis.
With mortgage rates on the rise and a potential cool-down in the U.S. housing market in 2022, Truebill provides Rocket with a potential growth source and a means of expanding its fintech service offerings further outside of its core mortgage business.

In August, Rocket CEO Jay Farner announced the company is expanding its business into the solar industry in an effort to help make clients’ homes more energy efficient. Farner said the depth and differentiated offerings of Rocket’s platform set it apart from other mortgage companies and create a unique value for investors.

“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 in a statement.

Rocket currently has an ecosystem of 2.5 million serviced clients and an industry-best retention rate of 91%. Truebill is on track to generate $100 million in annual recurring revenue in 2021, more than double its 2020 revenue.

Benzinga’s Take: Rocket appears to be looking for ways to further monetize its large customer base by unlocking value in other areas of their lives beyond their home mortgage. In fact, Farner has said he sees Rocket as more of a fintech and e-commerce company than a traditional mortgage business.

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