Fox Corporation (Nasdaq: FOXA, FOX) has acquired 67% of Fintech Credible Labs (ASX: CRD), according to a statement by Fox. The acquisition represents a 31% premium to the prior day share price. Fox is purchasing the shares for USD $265 million and has committed USD $75 million in growth capital.
Founded by CEO Stephen Dash, Credible is a Fintech that pre-qualifies borrowers for access to credit including student loans, personal loans and mortgages. Credible IPOed on the Australian Stock Exchange (ASX) in 2017 raising A$ 50 million.
Dash, who will remain as CEO, is expected to exchange shares equal to 33% of Credible’s outstanding common stock into units of a newly created FOX subsidiary.
Fox Corporation Executive Chairman and Chief Executive Officer Lachlan Murdoch said the acquisition of Credible “underscores Fox Corporation’s innovative digital strategy that emphasizes direct interactions with our consumers to provide services they want and expand their engagement with us across platforms.”
“Credible, which has tremendous synergy with core brands such as FOX Business and FOX Television Stations and will benefit from our audience reach and scale, will drive strategic growth, further develop our brand verticals and deepen consumer relationships.”
Dash said the acquisition will further enhance Credible’s position as a leading consumer finance marketplace in the United States, creating opportunities for organic growth and the expansion of the Credible platform.
“Credible’s industry-leading user experience, combined with FOX, will provide greater impact and scale for consumers.”
The transaction is expected to close in Q4 of this year. For Fox, it represents a divergence from its more media-centric investments which have largely focused on broadcast and video in past years.
