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Red Ventures to buy Bankrate for $1.24 billion

Published 07/03/2017, 08:40 AM
Updated 07/03/2017, 08:50 AM
© Reuters.  Red Ventures to buy Bankrate for $1.24 billion
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(Reuters) - Bankrate (N:RATE), an online publisher of personal finance content, said on Monday it would be acquired by digital marketing company Red Ventures for $1.24 billion.

Bankrate's shares rose 7 percent to $13.75 in premarket trading, slightly below the offer price of $14 per share.

The deal, expected to close in 2017, has an enterprise value of $1.4 billion.

Charlotte, North Carolina-based Red Ventures' investors include Silver Lake Partners and General Atlantic.

J.P. Morgan is Bankrate's financial adviser and Wachtell, Lipton, Rosen & Katz is the legal adviser.

Bank of America (NYSE:BAC), Barclays (LON:BARC), Citigroup (NYSE:C), Credit Suisse (SIX:CSGN), Fifth Third Bancorp (NASDAQ:FITB), Mitsubishi UFJ and PNC Financial (NYSE:PNC) are acting as financial advisers to Red Ventures, and are providing debt financing to the company.

Simpson Thacher & Bartlett LLP is Red Ventures' legal adviser.

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