Bankrate recently (Sep 2008) acquired the assets of LinkSpectrum , consisting mainly of the website CreditCardGuide.com, for $32 million in cash, plus $2 million for the companys working capital with a further payout of up to $10 milllion earn out over the next two years if performance targets are met.
CreditCardGuide.com is a credit card comparison website founded by Rafael David who at acquisition time was still the only full time employee. Ranking highly in Google for profitable key terms such as ’credit card’ (top result in Sep 2008 ) and ‘credit cards’ (2nd highest result as of Sep 2008) its easy to see how the website would derive significant revenue from providing comparison information and subsequent lead provision fees for signing consumers up to credit card companies products.
Bankrate also bought Nationwide Card Services in Dec 2007 , and as CreditCardGuide.com was an affiliate of NCS it must have seemed a logical step to add the site to the growing Bankrate portfolio.
Traffic Data :
CreditCardGuide.com on compete.com ( compared with another recent acquisition bankaholic.com)
CreditCardGuide.com on quantcast.com
Sources :
Reuters report , MarketWatch report , Motley Fool article , Paidcontent.org (NCS)
{ 0 comments… add one now }