The news: US-based proptech Rocket Companies agreed to acquire personal finance app Truebill for $1.275 billion in cash in a deal expected to close before the end of 2021.
More on this: Although the personal finance management (PFM) market is crowded, and Truebill is competing with the likes of Cleo, Albert, and Acorns, it’s on track to generate $100 million in annual recurring revenues, according to Rocket. And its 2021 revenues are more than double those of 2020.
Rocket’s also been growing, fueled by the hot US housing market, which has made it the largest mortgage lender in the US—it funded $313.4 billion during 2020, more than doubling the $141.6 billion it originated in 2019.
The bigger picture: Fintech consolidations are escalating as winners break away from the pack and seek to build a larger range of products.
The real estate market is cyclical. Impending interest rate hikes in the US will likely cool the record highs the mortgage market hit. Truebill’s steadier revenues will be welcome—as will be the detailed financial data it harvests from users. The latter might be the most valuable asset in this deal, if Rocket makes more fintech acquisitions to use it.