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Investment Banking and
Strategic Business Development
USA Interactive Purchase of Lending Tree
Acquisition Summary
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Target Information |
| Target: |
Lending Tree
Inc. |
| City: |
Charlotte |
State: NC
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| Type of Company: |
Online Mortgage
Lending Exchange |
| Financial Data As Of: |
Mar. 31, 2003 |
Revenue: $129.3
million |
Net Income: $13.4 million |
| Target’s Business: |
LendingTree
connects potential borrowers with banks via its Web site, where visitors
fill out forms for the type and amount of loan they want. The company
gets paid for passing along leads and when bankers and borrowers strike
a deal. LendingTree's lending exchange has more than 200 participant
lenders, and the company says it has facilitated nearly $48 billion in
closed loans since its inception. |
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Acquirer Information |
| Acquirer Name: |
USA Interactive |
| City: |
New York |
State: NY |
| Type of Company: |
Media and
Electronic Commerce |
| Financial Data As Of: |
Dec. 31, 2002 |
Revenue: $4.62
billion |
Net Income/ (Loss): $(4.4
million) |
| Acquirer’s Business |
USA Interactive
(USA), formerly known as USA Networks Inc., operates through its
subsidiaries as a diversified media and electronic commerce business.
The Company's business includes television broadcasting, electronic
retailing and ticketing operations. USA's divisions and subsidiaries
include Home Shopping Network, Ticketmaster, Expedia, Inc., Hotel
Reservations Network, Inc., Precision Response Corporation, Electronic
Commerce Solutions and Styleclick, Inc. |
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Transaction Information |
| Status: |
Pending |
| Announcement
Date: |
May 5, 2003 |
Accounting:
Merger |
| Completion Date: |
Late Summer |
Consideration:
$734 million |
| Comments: |
Under the terms
of the deal, LendingTree shareholders will receive 0.6199 of a share of
USA common stock for each share of LendingTree common stock that they
own, and LendingTree preferred stockholders will receive the same merger
consideration, on an as-converted basis. USA will issue to LendingTree
shareholders about 18.3 million basic shares and 21 million total shares
on a fully diluted, treasury method basis. The transaction is generally
expected to be tax-free to LendingTree shareholders. USA said the
acquisition of LendingTree will be neutral to USA's results. |
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