LendingTree, an online consumer lender, entered into a definitive agreement to acquire Ovation Credit Services.
Ovation utilizes a proprietary software application that facilitates the credit repair process and is integrated directly with certain credit bureaus while educating consumers on credit improvement via ongoing outreach with Ovation case advisors.
“LendingTree is committed to helping all consumers meet their financial goals, regardless of where they are in the credit spectrum,” said Doug Lebda, founder and CEO of LendingTree. “According to industry estimates, almost one-third of Americans have poor or bad credit, and our own consumer traffic mirrors this situation. By acquiring Ovation Credit Services, LendingTree will be able to better educate consumers about credit management and provide options for those consumers who have struggled with obtaining financing. ”
“We are incredibly excited to join the LendingTree team,” said Terry Cordell, president of Ovation Credit Services. “Given LendingTree’s emphasis on consumer education and empowerment, we are confident that this is the right platform for Ovation to expand its reach and help more consumers improve their credit health.”
LendingTree will acquire the shares of Ovation Credit Services for a total consideration of $20.75 million, which consists of $12 million in cash at closing, and contingent consideration payments of up to $8.75 million. The transaction is expected to close in the second quarter of 2018, subject to regulatory approvals and other customary closing conditions.
