The 2.5 million-member platform being acquired, which states it has saved consumers $100 million since its founding in 2015, could add a similar amount of recurring revenue each year to Rocket’s $1.3 billion in annualized servicing fee income, according to a press release.
The personal finance app, which in part helps consumers identify and cancel unused subscriptions, could have value in keeping Rocket’s customers engaged in between home, mortgage and
“We think this deal makes sense,” Bose George, Thomas McJoynt-Griffith, Ryan Tomasello and Michael Smith wrote in a report issued Dec. 20. “While it could impact the potential dividend, the company still appears to have meaningful excess capital after this transaction.”
Rocket issued a $1 billion special dividend in
However, when asked by Yahoo Finance in an online interview about whether the deal affects the possibility of a near-term special dividend, Rocket CEO Jay Farner said it wouldn’t.
“We continue to invest in things like Truebill to grow our platform, to grow our client base, to grow the lifetime value of our clients; but also making a special dividend remains on the table as well,” he said.
Farner called the personal finance app "a perfect fit” for his company in the company’s press release.
“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,” he said.
The personal finance platform was originally more narrowly targeted but expanded over the years, and the Rocket acquisition will help it continue that trajectory, Haroon Mokhtarzada, its co-founder and CEO, said in the release.
“What my co-founders and I originally created as a subscription-cancellation app has become so much more,” he said.
