Bankrate Inc. (RATE) announced that it has entered into a definitive agreement with InsWeb Corp. (INSW), by which InsWeb to sell substantially all of its assets relating to its insurance lead generation and marketing business to Bankrate for $65 million in cash at closing.
Bankrate said that InsWeb will retain a portfolio of e-commerce and online insurance distribution patents, which it will license to Bankrate on a perpetual, royalty-free, non-exclusive basis.
Bankrate has entered into voting agreements with shareholders representing approximately 40% of InsWeb's currently outstanding shares in connection with the transaction.
As per the terms of the agreement, Bankrate stated that it will also assume certain liabilities of InsWeb, as further specified in the agreement. Following the closing, InsWeb is expected to continue as a public company and will focus on a new business model in which it will license its patented technologies.
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of InsWeb's shareholders.
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