October 10, 2011 / 10:31 PM / in 6 years

UPDATE 1-Bankrate to buy InsWeb's businesses for $65 mln

* InsWeb to sell insurance lead generation, marketing business

* InsWeb to retain portfolio of e-commerce, online insurance distribution patents

* Deal to add immediately to Bankrate’s results.

Oct 10 (Reuters) - Bankrate Inc , which publishes personal finance content online, said it will buy InsWeb Corp’s insurance lead generation and marketing business for $65 million in cash.

Following the deal, InsWeb will retain a portfolio of e-commerce and online insurance distribution patents, which will be licensed to Bankrate on a royalty-free, non-exclusive basis.

North Palm Beach, Florida-based Bankrate said it will also assume certain liabilities of InsWeb and expects the deal to add immediately to its results.

InsWeb, which operates a network of insurance marketplace and education websites, will continue to operate as a public company.

“This transaction provides an attractive opportunity to exit the lead generation business and to shift our focus to monetizing our patent portfolio,” InsWeb CEO Hussein Enan saidf in a separate statement.

Shares of Bankrate closed at $15.81 Monday on the New York Stock Exchange, while those of InsWeb closed at $6.21 on Nasdaq.

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