LONDON, UK / ACCESSWIRE / July 5, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Bankrate, Inc. (NYSE: RATE), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=RATE. The Company announced on July 03, 2017, that pursuant to a definitive agreement, the Company is to be acquired by Red Ventures, a leading digital consumer choice platform, at an enterprise value of about $1.4 billion. Under terms of the agreement, Bankrate's shareholders are entitled to receive $14.00 per share in cash, representing a 31% premium to the Company's three-month average closing share price. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The Announcement
Bankrate is a leading online-based consumer financial services Company with online brands across personal finance segments, including credit cards, banking, and senior care.
Red Ventures views this agreement as a step to combine its advanced analytics, data science, and integrated technology, to develop connections between brands and consumers across multiple segments. Bankrate looks forward to being better positioned to be the partner of choice for providers to acquire customers.
Post the completion of the agreement, Bankrate's comprehensive platform and millions of users across different brands will strengthen Red Ventures' footprint in the financial services industry. The agreement is further expected to enhance the service provider-consumer relation, where the consumer is looking for authoritative information when making decisions about their personal finance and senior care. Red Ventures views significant potential to leverage the technology, strategic partnerships, and digital expertise, necessary to build on Bankrate's leading platforms to enable more consumers to find the financial service and product that matches their needs.
The transaction, which is expected to close in 2017, is subject to approval by Bankrate's shareholders, regulatory approval, and other customary closing conditions.
The Unmet Guidance
On February 24, 2016, Bankrate announced its Q4 FY15 and full-year FY15, results, under which it reported net revenues of $93.4 million, up 2% from Q4 FY14. The Company announced that growth in Q4 FY15 was impacted by two factors: on February 22, 2016, Google (NASDAQ: GOOGL) announced, that it was terminating its Compare services, including Compare Credit Cards, by March 23, 2016; and deposit advertisers significantly reduced their ad budgets far beyond the anticipated seasonal slowdown, where the Company fell short of its updated earnings guidance.
Other Announcements
Bankrate additionally sold its Insurance business to All Web Leads, Inc., a portfolio Company of Genstar Capital Partners, on December 29, 2015. The purchase price to be paid by All Web Leads consisted of $140 million to be paid in cash at the closing and $25 million to be paid on the second anniversary of the closing date in cash. The sale allowed Bankrate to focus its resources and energy on its two core businesses, namely: credit cards and banking.
According to an announcement on May 04, 2017, where the Company reported its Q1 FY17 results, Bankrate announced that its Credit Card segment observed revenues surged by 35% in the quarter. The continued growth in the segment was attributed to greater inquiry volume, even after excluding the NextAdvisor acquisition benefits. Also, the Banking segment revenue and adjusted EBITDA grew 18% and 70%, delivering a seventh consecutive quarter of year over year mortgage revenue growth despite a decrease in overall mortgage originations in the US, and for the first time in over two years grew revenue from deposit products year over year.
Last Close Stock Review
On Monday, July 03, 2017, the stock closed the trading session at $13.95, jumping 8.56% from its previous closing price of $12.85. A total volume of 9.88 million shares have exchanged hands, which was higher than the 3-month average volume of 495.11 thousand shares. Bankrate's stock price skyrocketed 40.91% in the last three months, 26.24% in the past six months, and 80.23% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 26.24%. At Monday's closing price, the stock's net capitalization stands at $1.22 billion.
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