Lending Tree, Inc. will Acquire Value Penguin


(Charlotte, NC) Financial decisions are rarely simple; in life.  Currently, Lending Tree, Inc. helps consumers with the previously described phenomenon.  Through choice, education and customer support the Lending Tree marketplace connects consumers with lenders.  It appears, as if, the aforementioned business will be adding some exciting features, to its marketplace.  Recently, Lending Tree, Inc. entered into a definitive agreement to acquire Value Holding, Inc.  The latter is the parent company of, Value Penguin or Valuepenguin.com.  The acquisition is expected to close in the first business quarter of the year 2019.  Lastly, the acquisition amount is $105 million USD, in cash money.

For the $105 million dollars in cash, which Lending Tree, Inc. (NASDAQ:  TREE) has to pay, Lending Tree will do two things.  First, it will use existing cash, which is on hand.  Second, it will have to use an existing credit agreement, in order, to arrive at the total amount.  The total amount of $105 million dollars is based on the following.  On September 30th, 2018, Value Penguin had made approximately $12.5 million dollars in profits.  Additionally, the adjusted EBITDA is $9 million dollars.  EBITDA, is a way to measure a company’s operational performance.  Furthermore; it is an acronym that means earnings before interest, tax, depreciation and amortization.  Valuepenguin.com is a personal finance website.  Through the website, consumers have valuable tools at their disposal.  For example, objective analysis is made available on a wide range of financial topics.  Additionally, there is also information about insurance and credit cards.  The business operations side of the website, conducts all of the research and analysis.  Jonathan Wu is a Co-Founder and the C.E.O. of Valuepenguin.com.  Through a press statement, Mr. Wu said the following.  “The combination of ValuePenguin’s high-quality organic traffic with LendingTree’s sophisticated marketing platform and direct carrier relationships will significantly accelerate both of our businesses beyond what we could do independently.  We are delighted to join the LendingTree team and are excited about what our two companies will be able to do together in the coming years.”

Doug Lebda is the Founder and C.E.O. of Lending Tree, Inc.  Through a press statement, Mr. Lebda said the following.  “Our recent QuoteWizard acquisition was our first step toward leadership in insurance customer acquisition.  Adding ValuePenguin’s high-quality content and SEO capability to QuoteWizard’s proprietary technology and carrier network will set us apart and enable us to provide immense value to carriers and agents.  Both businesses will benefit from LendingTree’s strong brand and extensive marketing capabilities.  We are in a great position to achieve further scale in the insurance space as well as the broader financial services industry.”  Doug Lebda also said, “We are thrilled to add ValuePenguin’s talented team and expertise to our portfolio.”

To end, the marketplace of Lendingtree.com is also a nationwide network.  The network is in conjunction with, more than 500 partners.  Additionally, there is also the My Lending Tree platform.  Through this platform; consumers receive free credit scores, credit monitoring and recommendations that improve overall credit health.  As previously stated, Lending Tree, Inc. has entered into a definitive agreement to acquire Value Holding, Inc.  The latter, is the parent company of Value Penguin, or, Valuepenguin.com.  The acquisition is expected to close in the first business quarter of the year 2019.  Lastly, the acquisition amount is $105 million USD, in cash money. 



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Written from Press Release

Registered Writer at

PR Newswire Association LLC

12/26/2018



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