Founders Advises on Four Recent Transactions in the Internet & Digital Media Sector
We continue to see a growing demand among institutional buyers for Web-based businesses that deliver quality content and information to consumers, while concurrently matching product and service providers to these consumers at their moment of need,” remarked Zane Tarence, Managing Director of Founders Investment Banking’s Internet & Digital Media practice. “We’ve had the opportunity to work with some very talented entrepreneurs in recent months and are continuing to experience more positive activity than ever in this space. This is a very exciting time to be involved in facilitating transactions in the Internet sector during a period of accelerating consolidation.”
The transactions advised upon by Founders include:
- The sale of Bankaholic.com to Bankrate, Inc. (Nasdaq: RATE) for $12.4 million in cash at closing and an additional $2.5 million earnout payable within twelve months of closing based upon the achievement of certain performance metrics Bankaholic provides rate information on savings products, such as certificates of deposit, savings accounts, and money market accounts, as well as insurance quotes and a comparison of credit card offers. The transaction is considered by many to be the most lucrative sale of a WordPress-based website in the publishing platform’s short history. Founders Investment Banking acted as the exclusive financial advisor to Bankaholic’s founder and sole shareholder, Johns Wu.
- The acquisition of BirminghamDoctors.com by Foundation New Media Properties Fund I, a fund created to invest alongside entrepreneurs seeking to develop leading Web-based properties in the digital media sector. BirminghamDoctors.com is seeking to become the leading professional community website that brings together doctors, patients, and hospitals in the greater Birmingham,Alabama area.
- The sale of a premier Internet-based referral service in the healthcare services industry to a leading private company in the online lead generation space. Details surrounding the transaction were undisclosed.
- The sale of a prominent personal finance blog that regularly receives over 700,000 monthly visits to a larger consolidator of digital media properties. Details surrounding the transaction were undisclosed.