Bankrate has inked a deal to acquire the business of NextAdvisor, an online source of independent and in-depth research and reviews of credit cards, personal finance and internet services. The deal is expected to close this quarter.
Bankrate says the acquisition provides proprietary intellectual property, technological capability, analytics, and optimization, particularly relating to the fast-growing content marketing channel.
The asset purchase includes upfront consideration of approximately $76.3 million in cash and approximately $3.0 million in time-based vesting restricted stock units.
The consideration also includes a potential earnout payment of up to $137.9 million payable in cash or Bankrate stock and up to $7.8 million in cash or time-based vesting restricted stock units based on the NextAdvisor business unit achieving certain growth targets over the 18 month period following the closing of the transaction.
The upfront payment represents a multiple of approximately 5 times NextAdvisor’s adjusted EBITDA for the trailing twelve months ended March 31, 2016 (pro forma for the removal of a one-time credit card marketing program benefit).
The maximum earnout payment will result in an overall purchase price multiple of no greater than 7.25 times an annualized adjusted EBITDA achieved over the earnout period (inclusive of the upfront payment).
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