Red Ventures to buy Bankrate in $1.4bn deal
Online finance publisher Bankrate is to be acquired by Red Ventures at an enterprise value of $1.4bn.
Bankrate shareholders will receive $14.00 per share in cash after the merger was given the green light by the company’s board of directors.
Red Ventures, a leading digital consumer choice platform, will quickly improve their reach in the financial services sector to help develop relationships between providers and consumers.
"We're excited to join forces with the Bankrate team, which has built an impressive and powerful platform of consumer-facing financial services content and brands," said its CEO Ric Elias.
"Our capabilities are highly complementary. We see significant potential to leverage our technology, strategic partnerships and digital expertise and build on Bankrate's leading platforms to help more consumers find the financial services and products that meet their needs."
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Bankrate helps customers make the most of their money when they borrow, save or invest while creating a range of editorial content related to topics such as credit cards, mortgages and deposits.
The business formed in 1976 and went online for the first time in 1996, launching Bankrate.com. Its website currently attracts in the region of 15m unique visitors per month.
"We are thrilled to have reached an agreement that delivers immediate and significant value to our shareholders while joining with Red Ventures, a world-class organization that will take the Bankrate businesses to the next level of success," said Kenneth S. Esterow, President and CEO of Bankrate.
"As a part of Red Ventures, Bankrate will be better positioned than ever to be the partner of choice for providers to acquire customers."
The deal is expected to be closed before the end of the year once Bankrate’s shareholders have signalled their approval.