Bankrate (RATE) Tops Q3 EPS by 3c; Will Sell insuranceQuotes Unit

Bankrate (NYSE: RATE) reported Q3 EPS of $0.19, $0.03 better than the analyst estimate of $0.16. Revenue for the quarter came in at $140.8 million versus the consensus estimate of $129.2 million.

RATE also has reached an agreement to sell its insurance business ("insuranceQuotes") to All Web Leads, Inc., a portfolio company of Genstar Capital Partners. The transaction is subject to certain closing conditions and is expected to close by December 31, 2015.

The insuranceQuotes business will continue normal operations throughout this process.

"This transaction is a win-win outcome for both parties," said Kenneth S. Esterow, President and CEO of Bankrate, Inc. "The sale will allow Bankrate to focus its energy and resources on the Company's two core businesses, credit cards and banking, and the great growth opportunities available in the Senior Care vertical. The joining together of insuranceQuotes with All Web Leads provides the combined entity significant scale to continue making investments in the rapidly evolving online insurance business."

The purchase price to be paid by All Web Leads will consist of $140.0 million to be paid in cash at the closing, and $25.0 million to be paid on the second anniversary of the closing date in cash or, to the extent payment in cash in full is restricted under All Web Leads' senior credit agreement, by delivery of a subordinated promissory note.

Austin, Texas-based All Web Leads (AWL) is the premier customer acquisition marketing company focused on the U.S. insurance industry. The Company's award-winning insurance leads, calls and clicks programs lead the industry in conversion, qualification and volume according to recent surveys.

All Web Leads CEO Bill Daniel, added, "We are thrilled to have the Bankrate insurance division become a part of AWL and we look forward to bringing our industry leading, agency-centric set of premium products to the many thousands of insuranceQuotes agent and agency customers across the U.S. Together, we expect to deliver a level of performance and service surpassing anything our customers have experienced before."

Bank of America Merrill Lynch served as Bankrate's financial advisor on the transaction. Paul Hastings served as Bankrate's legal counsel.

For earnings history and earnings-related data on Bankrate (RATE) click here.

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