PR - Bankrate Purchases Nationwide Card Services and Savingforcollege.com

Bankrate, Inc. (Nasdaq: RATE) announced this week it has acquired two companies in separate transactions. The first company, Memphis-based Nationwide Card Services, Inc. (NCS) markets a comprehensive line of consumer and business credit cards via the Internet. NCS’s clients include the top financial institutions and credit card issuers. The purchase price is $26.4 million in cash with an additional $7.0 million in potential earn-out based on achieving specific financial performance metrics over the next two years. 

"The acquisition of NCS adds breadth to one of the important channels we’ve targeted for growth," said Thomas R. Evans, President and CEO of Bankrate, Inc. "NCS’s affiliate network and strong platform, combined with our organic traffic, should provide the foundation for significant revenue growth in our credit card channel and a much better credit card offering to our consumers," Mr. Evans stated. 

NCS is managed by Robert and Scott Langdon, who founded the company in 2001. The Company has steadily grown since inception and is now recognized as one of the premier Internet credit card application networks in the industry. NCS will continue to operate out of the company’s headquarters in Memphis, TN. Both Robert and Scott Langdon will continue with the company as will the entire 23 person Memphis-based staff.

In a separate transaction, Bankrate also announced that it has acquired Savingforcollege.com LLC, a privately owned business run by college finance industry specialist, Joseph Hurley. The business was acquired for $2.25 million in cash and an earn out of $2.0 million for the achievement of certain performance metrics over the next two years.

Savingforcollege.com is the premier Internet destination for objective information about 529 college savings plans. The site is designed to help consumers and financial professionals learn more about options for college financing. 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 is located in Rochester, New York. All operations will continue in the Rochester office. The acquisition was completed after the financial markets closed on Wednesday, December 5, 2007.

"With college finance a growing concern for many consumers, we believe Savingforcollege.com is a valuable addition to Bankrate’s offering," said Joseph Hurley, founder of Savingforcollege.com. "We look forward to expanding the college finance channel and are thrilled to be joining the Bankrate team," Mr. Hurley commented.

Bankrate expects both of the acquisitions to be accretive in 2008.