DETROIT, Dec. 20, 2021 /PRNewswire/ -- 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.
Truebill was recently ranked #19 on the Deloitte Fast 500 list of the fastest-growing technology and life sciences companies in North America. It was also named the #1 Consumer Tech company on The Information's list of the 50 Most Promising Startups.
The deal is expected to close prior to the end of the year.
Forward Looking Statements
Some of the statements contained in this document are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management's current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
About Rocket Companies
Rocket Companies is a Detroit-based platform company consisting of personal finance and consumer technology brands including Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Amrock, Core Digital Media, Rock Connections, Lendesk and Edison Financial. Since 1985, Rocket Companies has been obsessed with helping its clients achieve the American dream of home ownership and financial freedom. Rocket Companies offers an industry-leading client experience powered by our simple, fast and trusted digital solutions. Rocket Companies has approximately 26,000 team members across the United States and Canada. Rocket Companies ranked #5 on Fortune's list of the "100 Best Companies to Work For" in 2021 and has placed in the top third of the list for 18 consecutive years. For more information, please visit the company's corporate website or investor relations website.
Truebill is a leading personal finance app that analyzes members' spending habits, identifies inefficiencies, and offers immediate methods to improve their financial health. It enables people to optimize their spending, manage subscriptions, lower their bills, and automatically set aside money to reach their savings goals. Truebill has saved members more than $100 million since 2016 and is headquartered in Silver Spring, Maryland, with offices in San Francisco.
Truebill's mission is to empower people to live their best financial lives. Truebill offers members a unique understanding of their finances and a suite of valuable services that save them time and money - ultimately giving them a leg up on their financial journey. For more information, go to www.truebill.com.
SOURCE Rocket Companies, Inc.