Credit card comparison company CompareCards in the being bought by LendingTree through the firm’s acquisition of Iron Horse Holdings.
The equity purchase has a total consideration of $130m made up for $85m in cash at closing and contingent consideration payments of up to $22.5m in 2017 and 2018 if growth targets are met.
The $85m in cash will be adjusted for working capital and transaction expenses.
Charlotte-based CompareCards aims to provide users with a centralised location for card comparison, credit education and credit health management.
It claims to attract more than 1.5 million visitors to its site each month.
The acquisition comes as part of LendingTree’s ongoing expansion and product diversification drive.
The marketplace lender’s founder and CEO Doug Lebda said “We strongly believe that Compare Cards’ technology platform, established issuer relationships and expert industry knowledge will accelerate our growth and further expand our presence in the online credit card comparison shopping industry.”
Acquired by New York-based internet firm IAC in 2003 LendingTree connects consumers to multiple lenders who compete for their business.
It says its network of 400 lenders have facilitated more than 55 million loans to date.
CompareCards’ president and founder Chris Mettler said his company’s, “core competencies, particularly as it relates to consumers with prime credit, will enhance LendingTree’s ability to capture meaningful market share in the credit card vertical.”
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