Bankrate seals two acquisitions, provides 2008 revenue guidance

Jennifer Schonberger | Dec 10, 2007 9:01am EST | Comment

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Bankrate, Inc. (Nasdaq: RATE), owner and operator of an Internet-based consumer banking, said this morning that it acquired Nationwide Card Services, Inc. and Savingforcollege.com in separate transactions.

The small cap acquired Nationwide Card Services, which markets a line of consumer and business credit cards via the Internet, for $26.4 million in cash with an additional $7 million in potential earn-out based on achieving specific financial performance metrics over the next two years.

Bankrate also acquired Savingforcollege.com LLC, a privately owned business run by college finance industry specialist Joseph Hurley for $2.25 million in cash and an earn out of $2 million for the achievement of certain performance metrics over the next two years.

The acquisition also provides Bankrate with copyright ownership of Mr. Hurley's highly regarded books, guides and other industry publications such as "Family Guide to College Savings," widely recognized as the industry standard.

Savingforcollege.com provides information about 529 college savings plans and is designed to help consumers and financial professionals learn more about options for college financing.

The company said it expects both acquisitions to be accretive in 2008 and is forecasting revenues of between $140 and $145 million. Fifteen analysts polled by Thomson Financial are on average projecting revenues of $118.84 million.

Shares of Bankrate (RATE) rose 5.95%, or $2.25, to $40 in pre-market trading. Shares of Bankrate have been trading in the range of $ 32.70 to $53.80 for the past 52 weeks.