LendingTree Inc. has agreed to buy insurance comparison marketplace QuoteWizard.com LLC for $370.2 million.
The equity purchase comprises $300 million in cash at closing and up to $70.2 million in contingent payments, subject to achieving growth targets over a three-year period. LendingTree plans to fund this through cash on hand and an existing credit agreement.
QuoteWizard.com had revenue of about $75.6 million and adjusted EBITDA of about $12.8 million for the first half of 2018. LendingTree expects the deal to be accretive to its adjusted earnings per share for 2019.
The deal is set to close in the fourth quarter.
Bank of America Merrill Lynch served as LendingTree's financial adviser. GCA Advisors LLC served as QuoteWizard.com's financial adviser.