Fox Corporation, headed by Australian media billionaire Lachlan Murdoch, is buying a majority stake in ASX-listed Credible Labs, a consumer finance marketplace.
The deal at $2.21 cash per CDI values the company at $A585 million and will give Fox a 67% stake.
The purchase price works out ot be about $US265 million ($AUD391million).
Credible's founder and CEO, Stephen Dash, is staying on. He will get more than $55.25 million in cash plus a shareholding in a new Fox subsidiary.
Dash is a former investment director at M.H.Carnegie & Co, the business home of investment banker Mark Carnegie.
Lachlan Murdoch said: “The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasises direct interactions with our consumers to provide services they want and expand their engagement with us across platforms. 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.”
Ron Suber, Credible’s Chairman, said: “Credible has achieved significant success since its inception. This proposed partnership with Fox will enable Credible to further innovate on its consumer offering and position itself as a leading independent personal finance marketplace in the United States.”
Fox says it will commit up to $USD 75 million ($AUD110.8 million) of growth capital to Credible over the next two years.
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