Bankrate Inc.has agreed to acquire the business of NextAdvisor Inc., a provider of online researchand reviews of credit cards, personal finance and internet services.
The consideration for the deal includes an up-front cash paymentof about $76.3 million and about $3.0 million in time-based vesting restricted stockunits. Also included in the consideration is a possible earnout payment of up to$137.9 million payable in cash or Bankrate shares and up to $7.8 million in cashor time-based vesting restricted stock units based on the NextAdvisor business unitreaching certain growth targets in the 18 months after the deal closes.
The up-front payment represents a multiple of about 5x NextAdvisor'sadjusted EBITDA for the trailing 12 months ended March 31, pro forma for the removalof a one-time credit card marketing program benefit. The maximum earnout paymentwill result in a total purchase price multiple of no more than 7.25x an annualizedadjusted EBITDA achieved over the earnout period.
The deal is expected to close before the end of the second quarter.
Vista Point Advisors served as exclusive financial adviser toNextAdvisor on the deal.