Online lending exchange LendingTree(NASDAQ: TREE) announced last week it is now set to acquire insurance comparison marketplace, QuoteWizard. According to LendingTree, QuoteWizard has helped nearly 40 million consumers find their ideal insurance policy with top-tier insurance carriers across key insurance markets, which are auto, home, and health.
LendingTree reported that the equity purchase has a possible total consideration of $370.2 million, which consists of $300 million in cash at closing and contingent payments of up to $70.2 million, subject to achieving certain growth targets over a three-year period. The QuoteWizard acquisition is expected to close in the fourth quarter subject to customary closing conditions and LendingTree intends to fund the acquisition through cash on hand and by drawing on the existing credit agreement. Speaking about the acquisition, Doug Lebda, Founder and CEO of LendingTree, stated:
“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 capitalize on the growing market opportunity that stems from the ongoing digitalization of the financial services industry.”
Co-founder and CEO, Scott Peyree, added:
“This acquisition will give our business the reach and tools it needs to continue our growth trajectory while further diversifying LendingTree’s product portfolio. We’re simply thrilled to join the LendingTree team and really excited about what our two companies will be able to do together in the coming years.”