Benzinga | Dec 20, 2021 09:16AM EST

Rocket Companies Expands Fintech Presence With $1.27B Truebill Acquisition

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. 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.

Truebill reportedly analyzes $50 billion in transaction volume on a monthly basis.

See Also: Why Rocket Companies Is A Fintech And E-Commerce Company, According To CEO Jay Farner

"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 CEO Jay 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.