Rocket Companies (NYSE: RKT), a leading online lender including mortgages, has acquired Truebill for $1.275 billion in cash. Rocket’s current market cap is around $30 billion.
Truebill is a digital platform that instantly uncovers and tracks your subscriptions enabling users to cancel these fees quickly to save money. Truebill also renegotiates bills on its clients’ behalf – saving them as much as 20 percent on services including cable and telephone bills while improving credit scores.
Truebill, an app-based service, reports over 2.5 million members having helped them save $100+ million in the past five years. The number of users has doubled in the past year. Truebill says it currently analyzes $50 billion in monthly transaction volume. The purchase of Truebill is designed to boost Rocket’s goal of creating a one stop location for consumers to manage their financial existence.
Jay Farner, CEO of Rocket Companies, said they are impressed as to what Truebill has created:
“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 said the addition of Truebill’s financial wellness services will support organic growth while keeping users engaged in the company’s Fintech ecosystem.
Haroon Mokhtarzada, co-founder and CEO of Truebill, said that by joining with Rocket they will be able to extend their reach, connecting consumers to even more services:
“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 Companies said that 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 reports 2.5 million serviced clients with a retention rate of 91 percent.
Truebill is said to be on track to generate $100 million in annual recurring revenue.