Fox Corp to buy Australian fintech Credible for about $396 mn

Credible LabsUS Broadcaster Fox Corporation to buy Australian online finance broker Credible Labs Inc., in a deal that values the fintech firm at $396 million.

Shareholders of Credible will get A$2.21 cash per CHESS Depositary Interests (CDI), a 31 percent premium to Credible’s closing price on the day prior to Fox’s initial May 29 proposal, Fox said.

Fox will further commit a capital of up to $75 million to Credible over two years, it said in statement.

As part of the deal, Credible’s founder and CEO Stephen Dash, will exchange shares equal to 33% of Credible’s outstanding common stock into units of a newly created FOX subsidiary.

Dash will continue to serve as CEO of Credible.

“…Credible, which has tremendous synergy with core brands such as FOX Business and FOX Television Stations and will benefit from our audience reach and scale, will drive strategic growth, further develop our brand verticals and deepen consumer relationships,” said Lachlan Murdoch, Fox Corp’s executive chairman and chief executive officer.

The transaction is expected to close in the fourth quarter of this year.

Credible shareholders will meet to consider the deal in October 2019, Credible said in a filing to Australian Stock Exchange.

Highbury Partnership is the financial adviser to Credible, while DLA Piper is acting as legal adviser. Kirkland & Ellis LLP and Herbert Smith Freehills are serving as U.S. and Australian legal counsel, respectively, to Fox Corporation.

San Francisco-based Credible operates an online platform for consumers to compare loans and mortgages.

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