Rupert Murdoch’s Fox has agreed to buy a controlling stake in Credible Labs for $265 million, adding an online finance marketplace to its digital offerings.
San Francisco-based Credible, which is listed on the Australian market, services the $1.6 trillion a year U.S. mortgage market. The platform provides credit checks to borrowers seeking mortgages and student loans and uses that information to show them pre-qualified loan rates and refinancing options that they can click through to obtain.
Fox consists of Murdoch’s remaining media assets since he sold the 21st Century Fox studio to Walt Disney in March. It will pay $265 million for a 67% stake in Credible and commit up to $75 million of growth capital to Credible over approximately two years.
The A$2.21 offer price represents a 7% premium to Credible’s close of A$2.06 on Friday.
“The acquisition of Credible underscores Fox Corp.’s innovative digital strategy that emphasizes direct interactions with our consumers to provide services they want and expand their engagement with us across platforms,” Fox CEO Lachlan Murdoch said in a news release.
He added that Credible has “tremendous synergy with core brands such as Fox Business and Fox Television Stations.”
As Reuters reports, Fox has been hunting for “growth following the sale of its film and TV assets to Disney.” In its first deal since the spinoff, it agreed in May to buy 4.99% of the online sports-betting company Stars Group for $236 million.
“Besides being a source of information for its Fox Business online platform, Fox executives will also use Credible data on the digital sites for its local TV stations, which reach almost half the country,” The Wall Street Journal said.
Fox’s offer values Credible at A$585 million less than two years after it listed in Australia at just over half that value.
“Fox Corp.’s record of innovation and focus on audience engagement will further enhance Credible’s position as a leading consumer finance marketplace in the United States, creating opportunities for organic growth and the expansion of the Credible platform,” Credible CEO Stephen Dash said.