NEW YORK and CHARLOTTE, N.C. — Bankrate, a personal finance site based in New York, is being acquired by Red Ventures of Charlotte in an all-cash transaction worth $1.4 billion. Under the terms of the merger agreement, Bankrate shareholders will receive $14.00 per share in cash, which represents a premium of approximately 31 percent over Bankrate’s three-month average closing share price.
The merger agreement has been unanimously approved by Bankrate’s Board of Directors.
The combination will create a scaled and diversified digital platform of consumer marketplaces. Bankrate is a leading consumer financial services company with online brands across personal finance categories, including credit cards, banking and senior care. Red Ventures uses advanced analytics, data science and integrated technology to cultivate digital connections between brands and consumers across the financial services, home services and healthcare industries. Bankrate’s comprehensive platform and millions of users across multiple brands will deepen Red Ventures’ footprint in the financial services industry and enhance relationships between financial services providers and consumers looking for trusted, authoritative information when making decisions about their personal finances and senior care.
Bankrate owns the websites CreditCards.com, Bankrate.com, and Caring.com along with NextAdvisor.com, The Points Guy, Interest.com, Quizzle.com and Walla.by. Bankrate also develops and provides content, tools, web services and co-branded websites to over 100 online partners, including Yahoo!, CNBC and MarketWatch. In addition, Bankrate licenses editorial content to leading news organizations such as The Wall Street Journal and The New York Times.
“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 Ric Elias, CEO of Red Ventures. “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.”
“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 transaction is expected to close later this year.
J.P. Morgan Securities LLC is acting as exclusive financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Bankrate. Bank of America, Barclays, Citi, Credit Suisse, Fifth Third, MUFG and PNC are acting as financial advisors and are providing debt financing to Red Ventures. Simpson Thacher & Bartlett LLP is acting as legal advisor to Red Ventures.