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Rocket may make an early acquisition



Dan Gilbert (Dan Gilbert) told CNBC before his company’s debut on the New York Stock Exchange (NYSE) on Thursday that Rocket Companies may make acquisitions to further utilize its mortgage technology.

Gilbert, chairman of Rocket Companies, founded in 1985, said: “We hope to use our stock as currency and it is possible to acquire more financial technology institutions and put them into practice.”

Rocket’s close on Thursday rose 19.5% to $21.51 per share. The Detroit-based company sold 1

00 million shares in an initial public offering at a price of $18 per share, which is below its target price of 150 million shares and an issue price of between $20 and $22.

Reuters reported on Wednesday that the report hinted that investors value Rocket (the largest mortgage lender in the United States and the parent company of Quicken Loans) at higher valuations, more as a financial services company than as a technology company.

Billionaire Gilbert (Gilbert) said on the “Squawk Box”: “This is one of the points of the debate. We think we are a technology company engaged in housing loans.”

Rocket Mortgage by Quicken Loans is known for its fast online mortgage application and refinancing services. In addition to the core housing loan business, Rockets Companies also has personal and auto financing businesses. It also has sites such as ForSaleByOwner.com and LowerMyBills.com.

Gilbert touted the ability of Rocket Companies to develop technology to support Rocket Mortgages, which is why the acquisition is coming.

“You are mortgaged in 3,000 counties and 50 states. Each mortgage is different. Each part must be substantial. Once you mortgage electronically or digitally, any other type of transaction will be less troublesome. ,” He says.

Gilbert continued: “We think that with public shares, if we go out and buy some businesses, we can help them really achieve their goals, because mortgages are the most difficult.”

In the S-1 file submitted to the Securities and Exchange Commission, Rocket reported that its net income in 2019 was $5.1 billion and its profit was $893.8 million. The company also stated in the document that despite the economic impact of the coronavirus pandemic, it had record sources of mortgage loans in March, April, May and June this year.

“This month, we will close 100,000 mortgages in 50 states, so we know that the technology platform already exists. We know it’s powerful, and we will continue to prove it to the market,” said Jay Farner, chief of Rocket Executive officer, who later became CNBC’s “Squawk Alley”.

Fana said it was a strong year for the Rocket Company and recommended dividends to shareholders. However, he said they did not have a timetable, saying “our first task is always to invest in our company.”

“But when you go through a year like now, our current EBITDA margin has exceeded 70%, and the transaction volume we hope to see increases from $15 billion to the current $30 billion, you can use this The price is measured,” Fana said. “For us, this will be an exciting year. Therefore, we just want to keep all options open, and dividends may be the real choice of our shareholders.”


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