Bankrate announced today it has acquired Bankaholic, a Web site owned by Blackshore Properties, Inc.
Bankaholic provides rate information on savings products, such as certificates of deposit, savings accounts, and money market accounts, as well as insurance quotes and a comparison of the best credit card offers, which are currently powered by Bankrate. In addition, Bankaholic offers consumers advice and information that allows consumers to comment and rate banks and their promotions through social networking features. Bankrate paid $12.4 million for Bankaholic, with up to an additional $2.5 million earn-out payment available for the attainment of certain performance metrics in the next 12 months.
"We have been working with Bankaholic in a co-brand relationship since July and have seen first-hand the volume and quality of its traffic," stated Thomas R. Evans, President and CEO of Bankrate. "Bankaholic is ranked high in natural search for both deposit and credit card keywords. We believe their organic traffic will increase our deposit and credit card revenue, and with a high composition of free traffic, will help to improve margins," Mr. Evans added.
Bankrate will take over the operation and management of the Bankaholic Web site immediately. John Wu, the founder of Bankaholic, is the sole employee and will work with the company for a specified period of time during the transition.