Television broadcasting company Fox has agreed to acquire 67% stake in US-based Credible Labs, a consumer finance marketplace in the US, for a price of around $265m (£217.8m).
Furthermore, Fox has committed to invest up to $75m (£61.64m) in Credible over nearly two years.
Credible is an online marketplace for borrowers seeking personalised loans
Listed on the Australian Stock Exchange (ASX), the US fintech company provides an online marketplace to offer borrowers personalised loan offers from various, vetted lenders in real time.
The online marketplace allows consumers to compare instant, accurate pre-qualified rates from various financial institutions across personal loans, student loans, and mortgages.
Founded in 2012, Credible has developed a technology platform that is integrated with financial institutions and credit bureaus.
Fox executive chairman and CEO Lachlan Murdoch said: “The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasizes direct interactions with our consumers to provide services they want and expand their engagement with us across platforms.
“Credible, which has tremendous synergy with core brands such as FOX Business and FOX Television Stations and will benefit from our audience reach and scale, will drive strategic growth, further develop our brand verticals and deepen consumer relationships.”
As part of the deal, Credible’s founder and CEO Stephen Dash will exchange 33% of the shares held in the company into units of a newly created FOX subsidiary, which will be subject to certain approvals from the ASX. Dash will continue in his role as Credible’s CEO.
Dash said: “Fox Corporation’s record of innovation and focus on audience engagement will further enhance Credible’s position as a leading consumer finance marketplace in the United States, creating opportunities for organic growth and the expansion of the Credible platform.
“Credible’s industry-leading user experience, combined with FOX, will provide greater impact and scale for consumers.”
The transaction, which is likely to be closed in the fourth quarter, is subject to a majority vote of all Credible’s shareholders, a majority vote of all shareholders other than Dash and his affiliates, and also regulatory approvals and other customary closing conditions.
