LendingTree, an online financial services marketplace, has agreed to acquire insurance comparison marketplace QuoteWizard.com in a deal worth $370.2m.
QuoteWizard, established in 2006, offers quotes on auto, home, renters, health, and medicare supplement insurance. The business registered around $12.8m in adjusted EBITDA and around $75.6m in revenue in the first half of 2018.
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The deal includes $300m cash as well as contingent payments of up to $70.2m based on certain targets.
Moreover, the marketplace will fund the deal using its existing cash reserves and an existing credit agreement.
Founder and CEO Doug Lebda said: “By acquiring QuoteWizard, LendingTree will establish itself as a leading player in the online insurance advertising industry, while continuing our ongoing diversification within the financial services category.
“With QuoteWizard’s proprietary technology platform, direct relationships with over 30 of the top-tier carriers and a network of nearly 10,000 agents, combined with LendingTree’s strong brand and extensive reach, we will be well-poised to capitalise on the growing market opportunity that stems from the ongoing digitalisation of the financial services industry.”
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By GlobalDataThe transaction will wrap up in the final quarter of this year. Also, LendingTree expects the deal to be accretive to its adjusted earnings per share next year.
QuoteWizard co-founder and CEO Scott Peyree said: “LendingTree’s strong brand identity, online marketing and technology capabilities are the ideal match for what we’ve built at QuoteWizard.”
