LendingTree Loans has signed a definitive agreement to acquire assets of First Residential Mortgage Network, Inc. (doing business as SurePoint Lending), an online lender that provides residential mortgage loans, for a maximum consideration of $23 million. Both the companies are based in the US.
LendingTree Loans is a subsidiary of Tree.com, Inc., an online lending and real estate company.
As part of consideration, Tree.com will pay SurePoint shareholders an aggregate purchase price of $6 million in cash and contingent consideration up to an aggregate additional $17 million pursuant to earn out provisions over the next three years.
Petsky Prunier, LLC is acting as financial advisor to Lending Tree Loans.
The acquisition is expected to close in the first quarter of 2011.