September 11, 2008 / 9:12 PM / 11 years ago

UPDATE 1-Bankrate buys CreditCardGuide.com, affirms 2008 view

(Recasts; adds details)

Sept 11 (Reuters) - Bankrate Inc RATE.O said it acquired the assets of LinkSpectrum Co, including CreditCardGuide.com which provides credit-card comparisons, for $32 million in cash, and reaffirmed its full-year outlook.

The operator of Internet-based consumer banking marketplace said it paid an additional $2 million for the company’s working capital, and will also pay up to an additional $10 million in potential earn out.

The acquisition is expected to add traffic, boost revenue and improve margins in its credit card business, Chief Executive Thomas Evans said in a statement.

The company said it will immediately take over the operation and management of CreditCardGuide.com Website, the principal asset of North Carolina-based LinkSpectrum.

Rafael David, the founder and only full-time employee of CreditCardGuide.com will be working with Bankrate through a transition period, Bankrate said.

In December last year, Bankrate acquired Nationwide Card Services Inc, which markets consumer and business credit cards, to broaden its credit card and college finance channels.

The company reaffirmed its full-year outlook. In August, it had forecast revenue of between $164 million and $169 million for the year.

Shares of Bankrate closed up 3 percent at $37.45 Thursday on Nasdaq. (Reporting by Adheesha Sarkar in Bangalore; Editing by Deepak Kannan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below