Rocket Companies, which runs several financial services businesses including Rocket Mortgage, will acquire personal-finance app Truebill for nearly $1.3 billion, the company announced Monday.
The purchase is more than double Truebill's previous valuation of $500 million from a fundraising round the smaller company announced in June. Rocket will pay for the acquisition in cash, and the deal is expected to close by the end of the year.
Truebill's financial technology, which monitors bank and credit card statements for subscriptions and other recurring charges, will add to Rocket Companies' real estate, home financing and automotive sales business lines, the company said in its announcement.
"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," Jay Farner, CEO of Rocket Companies, said in a statement.
Rocket Companies, which runs fintech businesses including Rocket Mortgage, Rocket Homes and Rocket Loans, saw its stock drop in mid-morning trading following the announcement, dipping to around $14.25 after opening at $15.17.
A Rocket Companies spokesperson said Truebill's 150 employees will join its workforce. Rocket, which is the largest employer in its headquarters city of Detroit, will retain Truebill's Silver Spring, Maryland, headquarters.
Since Truebill was founded in 2015, the company has attracted 2.5 million users, doubling its user base in 2021. The company analyzes $50 billion in monthly transactions and claims it has saved its users more than $100 million in its six years of operation.