Online loan marketplace LendingTree has agreed to acquire Ovation Credit Services, a credit repair platform.
The deal will see LendingTree pick up the shares for a total consideration of $20.75m, consisting of $12m in cash at closing and $8.75m in contingent consideration payments.
North Carolina-headquartered LendingTree is an online marketplace for loans, which also provides consumers with tools to understand their needs and find the best policy. The platform helps consumers to compare a range of products including home refinancing, personal loans, auto loans, business loans, credit cards, insurance, student loans, and reverse mortgage, among others.
LendingTree has helps to facilitate over 65 million loan requests and has a network of 500 lenders on the platform.
Florida-based Ovation supports a consumer with repairing their credit scores by working alongside credit bureaus and creditors to resolve credit report issues. The company disputes inaccurate credit reports, educate consumers on credit, and monitor credit activity to alert users of identity fraud.
Through the acquisition, LendingTree will use Ovation’s ‘experienced management team, strong credit bureau relationships and customized software platform’ to expand its reach and help more consumers with credit.
LendingTree founder and CEO Doug Lebda said, “By acquiring Ovation Credit Services, LendingTree will be able to better educate consumers about credit management and provide options for those consumers who have struggled with obtaining financing.”
The global marketplace lending sector raised a total of $9.9bn, of which, $6.4bn was raised in the second half of the year, according to data by FinTech Global. While a majority of capital was invested in H2, there were 22 less deal completed.
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