LendingTree Inc. has announced its acquisition of QuoteWizard.com LLC, a Seattle-based online insurance marketplace, in an equity purchase consisting of $300 million in cash at closing and contingent payments of up to $70.2 million based on revenue growth targets during the next three years.
The acquisition is expected to close in the fourth quarter subject, with LendingTree
financing the acquisition using cash on hand and an existing credit agreement. QuoteWizard
, which began operating in 2006, generated approximately $75.6 million in revenue during the first six months of this year.
"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," said Doug Lebda, founder and CEO of LendingTree. "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."