Bankrate (RATE) to Buy Insurance Lead Generation, Marketing Assets of InsWeb (INSW) for $65M
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InsWeb Corporation (NASDAQ: INSW) and Bankrate, Inc. (NYSE: RATE) announced today that they have entered into a definitive agreement for InsWeb to sell substantially all of its assets relating to its insurance lead generation and marketing business to Bankrate for $65 million in cash at closing, subject to a working capital adjustment specified in the agreement.
InsWeb will retain a portfolio of e-commerce and online insurance distribution patents, which it will license to Bankrate on a perpetual, royalty-free, non-exclusive basis. Bankrate has entered into voting agreements with shareholders representing approximately 40% of InsWeb's currently outstanding shares in connection with the transaction.
Under the terms of the agreement, Bankrate will also assume certain liabilities of InsWeb, as further specified in the agreement. Following the closing, InsWeb is expected to continue as a public company and will focus on a new business model in which it will license its patented technologies.
InsWeb's board of directors unanimously approved the agreement. The transaction is subject to customary closing conditions, including regulatory approvals and the approval of InsWeb's shareholders. The agreement contains several other terms and further details expanding on the information included in this press release, and a copy of the agreement will be filed with the SEC by InsWeb.
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InsWeb will retain a portfolio of e-commerce and online insurance distribution patents, which it will license to Bankrate on a perpetual, royalty-free, non-exclusive basis. Bankrate has entered into voting agreements with shareholders representing approximately 40% of InsWeb's currently outstanding shares in connection with the transaction.
Under the terms of the agreement, Bankrate will also assume certain liabilities of InsWeb, as further specified in the agreement. Following the closing, InsWeb is expected to continue as a public company and will focus on a new business model in which it will license its patented technologies.
InsWeb's board of directors unanimously approved the agreement. The transaction is subject to customary closing conditions, including regulatory approvals and the approval of InsWeb's shareholders. The agreement contains several other terms and further details expanding on the information included in this press release, and a copy of the agreement will be filed with the SEC by InsWeb.
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