FiNet Bags RealEstate.com
April 30, 2002
Assets To Be Acquired Include Domain Name, Web Site And Broker Hosted Web Sites
Inman News Features
FiNet.com (Nasdaq: FNCM) has signed a definitive agreement with RE Ventures and its shareholders to acquire the company, which owns assets formerly owned by RealEstate.com.
The assets include the RealEstate.com domain name, intellectual property, computer equipment and other assets used to operate the RealEstate.com Web site, several thousand real estate broker, mortgage broker and insurance agent hosted Web sites and the RealEstate.com Web site.
FiNet intends to utilize the assets to expand its virtual loan center business, build the Web-retail division of its mortgage business, increase the activities of its wholesale mortgage banking division by funding high-margin products, enter into the real estate lead-origination market and gain exposure from the RealEstate.com domain name.
"We believe the acquisition of RE Ventures significantly strengthens FiNet's intrinsic value and positions the company to dramatically grow its businesses," said FiNet CEO Dan Rawitch. "The acquisition and integration of the RealEstate.com assets will put us in front of thousands of consumers, real estate professionals and mortgage brokers daily. This increased exposure, combined with FiNet's technology, will enable us to aggressively move the company forward."
FiNet will issue approximately 1.4 million shares of its common stock as initial consideration for the purchase of all of the stock of RE Ventures, which will become a wholly owned subsidiary of FiNet. RE Ventures shareholders may be eligible to receive a performance bonus of additional FiNet common stock two years after the closing of the acquisition as an earn out, depending on the financial performance of RE Ventures and FiNet?s stock price at that time.
The issuance of securities in connection with the acquisition and the related transaction terms are subject to FiNet stockholders approval.
FiNet.com provides technology and loan products and automated services for mortgage brokerages, real estate brokerages and consumers.
Copyright: Inman News Service