Fox Corporation has entered a definitive merger agreement to acquire a majority stake in Credible Labs Inc., a leading consumer finance marketplace in the country. Fox is looking to buy 67% of the company for $265 million and commit up to $75 million of growth capital to Credible over the next two years.
Credible is described as a company that “delivers a differentiated and personalized experience that enables consumers to compare instant, accurate pre-qualified rates from multiple financial institutions across student loans, personal loans and mortgages, helping consumers save money and make better financial decisions.”
“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,” said Fox Corporation Executive Chairman and Chief Executive Officer Lachlan Murdoch. “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.”
Credible founder Stephen Dash will retain his post as CEO and will exchange shares equal to 33% of the company’s outstanding common stock into units of a newly created Fox subsidiary.
“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,” Dash stated. “Credible’s industry-leading user experience, combined with FOX, will provide greater impact and scale for consumers.”
The transaction is expected to close in the fourth quarter of this year upon the majority vote of all Credible shareholders, majority vote of all shareholders other than Dash and his affiliates and is subject to the receipt of regulatory approvals.
Once closed, the Fox Corporation will add Credible to its digital roster which includes the Fox Nation service, the pay-per-view functionality on the Fox Sports app, live and on-demand content on Fox Now, FOXNews.com, FOXBusiness.com and the websites of local Fox TV Stations.