The acquisition is expected to close in the second quarter
LendingTree has agreed to acquire credit-service provider Ovation Credit Services in a deal with total consideration of about $20.8 million.
LendingTree founder and CEO Doug Lebda said the acquisition is part of the company’s drive to better educate consumers about credit management and provide options for consumers who have struggled with obtaining financing.
"LendingTree is committed to helping all consumers meet their financial goals, regardless of where they are in the credit spectrum," Lebda said. "According to industry estimates, almost one-third of Americans have poor or bad credit, and our own consumer traffic mirrors this situation.”
Lebda said that the company’s platform will be able to help more consumers achieve their financial goals with Ovation’s experienced management team, strong credit bureau relationships, and customized software platform.
Ovation utilizes a proprietary software application that facilitates the credit repair process and is integrated directly with certain credit bureaus. The company also educates consumers on credit improvement via ongoing outreach with Ovation case advisors.
LendingTree will acquire Ovation’s shares for $12 million in cash at closing as well as contingent consideration payments of up to about $8.8 million. The transaction is expected to close in the second quarter, subject to regulatory approvals and other customary closing conditions.
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