InsWeb Corporation, an online insurance portal in the US, has entered into definitive agreement to sell substantially all of its assets relating to its insurance lead generation and marketing business to Bankrate insurance business for $65m in cash at closing.
Under the terms of the agreement, Bankrate will also assume certain liabilities of InsWeb and upon 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.
InsWeb said it 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.
InsWeb chairman of the board and CEO Hussein Enan said the purchase price represents a compelling valuation for the business, while the firm believe the retention of patent portfolio and planned efforts to license the proprietary technologies we have developed over the years provides potential upside to our shareholders.
InsWeb was advised as to financial matters by GCA Savvian, and as to legal matters by Sidley Austin. Bankrate was advised in this transaction as to legal matters by Wachtell, Lipton, Rosen & Katz.
The transaction is subject to customary closing conditions, including regulatory approvals and the approval of InsWeb’s shareholders.