Dan Gilbert’s Rocket Companies plans to buy a personal finance startup called Truebill for $1.275 billion.
The cash deal was announced Monday and is expected to close before the end of the year. Truebill, a smartphone app with a rapidly growing user base, was founded in 2015 by three brothers and is based in Silver Spring, Maryland.
The number of Truebill employees and whether any intend to relocate to the Detroit metro area after the sale was not disclosed.
The Truebill deal will mark Detroit-based Rocket Companies’ largest acquisition since it went public in the summer of 2020.
There are more than a dozen different companies under the Rocket umbrella, the largest being Rocket Mortgage, formerly known as Quicken Loans, which reportedly accounted for more than 95% of Rocket Companies’ total revenue in 2020.
The Truebill app tracks your users’ budget and spending and helps them cancel recurring subscription charges. Truebill says that it has doubled its number of users in the last year and now has up to 2.5 million users and $50 billion in transactions analyzed each month.
Rocket said the acquisition of Truebill will add $100 million a year in recurring revenue to its own bottom line and move Rocket “closer to the goal of creating a centralized destination for consumers to manage their entire financial lives.”
On Monday, shares of Rocket closed down 6% at $14.47.
The three founders of Truebill are the brothers Haroon Mokhtarzada, Idris Mokhtarzada and Yahya Mokhtarzada.
Haroon Mokhtarzada also founded Minder, a dating app for Muslims now known as Salams, and previously sold his website building business Webs.com for $117.5 million in 2011.
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