Why Did Rocket Companies Buy Truebill For $1.3B? CEO Jay Farner Explains

Rocket Companies Inc RKT announced Monday it will buy the personal finance app Truebill for $1.275 billion in cash.

"This allows us to complete this important component of our platform," Rocket Companies CEO Jay Farner said on CNBC's "Squawk On The Street."

Truebill will allow Rocket Companies to keep people engaged with the company's funnel even when they are not in need of mortgage assistance, according to Farner.

What To Know: Truebill is a membership-based financial services app that aims to help its users with budgeting, subscription management, bill payments and more.

The company doubled in size from 2020 to 2021 and has a younger target audience who will eventually be looking to purchase homes. This made Truebill an attractive acquisition target for Rocket Companies.

Why It's Important: "Seventy percent of their clients don't have a home today ... so imagine, you've got all of your data in Truebill and you are saving money each and every month and now it's time to buy a home," Farner said. "Well instead of going through a really long mortgage process, you can tie directly to Rocket Mortgage."

Farner told CNBC the acquisition is ultimately a way for Rocket Companies to continue to grow its market share and accelerate the way it engages with its clients.

See Also: Why Rocket Companies Is A Fintech And E-Commerce Company

What's Next: Farner remains optimistic about Rocket Companies' performance in 2022.

"The housing market remains very very strong. Purchases remain strong and again, Truebill allows us to engage with people thinking about buying a home so we can reach that goal of being the largest purchase lender in the country by the end of 2022," said Farner.

RKT Price Action: Rocket Companies has traded as high as $43 over a 52-week period. It's making new 52-week lows Monday.

The stock was down 7.74% at $14.23 at time of publication.

Photo: Erik Drost from Flickr.