Rocket Companies announces its largest acquisition to date

Shares of Rocket Companies Inc (NYSE: RKT) are down about 8.0% on Monday after the mortgage lender announced its largest acquisition to date.

Rocket is buying Truebill for $1.275 billion

In a press release this morning, Rocket Companies said it will buy Truebill – a personal finance app for $1.275 billion in cash. The Michigan-based company expects the acquisition to be accretive to its annual recurring revenue by $100 million.

According to CEO Jay Farner, it’s the “connectivity” and the ease of data transfer, enabling smart financial decisions that makes Truebill a great fit for Rocket Companies. On CNBC’s “Squawk on the Street”, he said:

Deal is expected to close in the next few days

Truebill now has 2.5 million users after a 100% growth in the member count last year. Its deal with Rocket Companies is expected to close before the end of 2021. Commenting further on the rationale behind the $1.275 billion agreement, CEO Farner said:

In November, Rocket Companies reported its second consecutive record purchase quarter. The stock is down nearly 30% for the year.