Rocket Companies, a Detroit-based platform providing tech-driven real estate, mortgage and financial services businesses, has entered into an agreement to acquire personal finance app Truebill.
Founded in 2015, Truebill currently has 2.5 million members, and has doubled its user base in just the last year. The company’s app enables consumers to manage subscriptions, improve their credit scores, track spending, and build budgets. Truebill also renegotiates bills on its clients’ behalf – saving them as much as 20% on services including cable and telephone bills.
Rocket Companies said the deal, worth $1.275bn, will bring millions of clients to the Rocket platform and is expected to add $100m in annual recurring revenue to Rocket’s $1.3bn of annualised servicing fee income.
Moreover, the company added that Truebill’s ability to leverage technology to constantly improve its clients’ financial health adds to its end-to-end real estate and home financing platform and quickly growing automotive sales marketplace, bringing it closer to the goal of creating a centralised destination for consumers to manage their entire financial lives.
Jay Farner, CEO of Rocket Companies, said, “We are very impressed with what Truebill has created – providing a simple, intuitive client experience to help its users save significant money.
“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.”
The deal is expected to close prior to the end of the year.
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