CHARLOTTE, N.C., May 12, 2011 /PRNewswire/ -- Tree.com, Inc.
(NASDAQ: TREE), today announced that it has reached a definitive
agreement to sell substantially all of the operating assets of its
Home Loan Center subsidiary to Discover Financial Services (NYSE:
DFS), headquartered in Riverwoods,
Illinois for a net purchase price of approximately
$55.9 million.
Home Loan Center, which operates as LendingTree Loans, a
correspondent lending company, originates and processes consumer
mortgage loans in all fifty states and the District of Columbia. The sale will add a home
loan component to Discover's direct-to-consumer banking products,
which include credit cards, personal loans, private student loans,
certificates of deposit, savings accounts and Roth individual
retirement accounts.
"We believe this transaction is a significant step forward for
Tree.com," said Doug Lebda, chairman
and chief executive officer of Tree.com. "This move enables us to
bring more focus to our core lead generation business at a time
when demand for LendingTree leads is particularly strong. In
addition to the purchase price, this transaction will unlock
significant cash that can be used to invest in our other verticals
as we continue towards revenue diversification."
"Discover is acquiring a proven operating platform that we can
scale by leveraging our brand and lending expertise," said
Carlos Minetti, president of
consumer banking and operations for Discover. "This will enable us
to expand our line of banking products and provide home loans to
consumers."
The transaction is subject to various closing conditions and the
approval of the stockholders of Tree.com. The acquisition is
expected to close by the end of 2011.
About Tree.com, Inc.
Tree.com, Inc. (NASDAQ: TREE) is the parent of several brands
and businesses that provide information, tools, advice, products
and services for critical transactions in our customers'
lives. Tree.com, Inc. is the parent company of wholly owned
operating subsidiaries: LendingTree, LLC and Home Loan
Center, Inc., which does business as LendingTree Loans. Our
family of brands includes: LendingTree.com®, LendingTree Loans,
GetSmart.com®, RealEstate.com®, DegreeTree.com, HealthTree.com,
LendingTreeAutos.com, DoneRight.com, and InsuranceTree.com.
These brands serve as an ally for consumers who are looking to
comparison shop for loans, real estate and other services from
multiple businesses and professionals who will compete for their
business.
Tree.com, Inc. is headquartered in Charlotte, N.C. and maintains operations
solely in the United States. For
more information, please visit www.tree.com.
Additional Information and Where to Find It
This press release may be deemed to be solicitation material in
respect of the proposed transaction discussed above. In connection
with the proposed transaction, Tree.com plans to file a proxy
statement with the Securities and Exchange Commission. STOCKHOLDERS
ARE ADVISED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE
THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. The final proxy statement will be mailed to
our stockholders. Stockholders may obtain a free copy of the proxy
statement when it becomes available, and other documents filed by
us with the SEC, at the SEC's web site at http://www.sec.gov. Free
copies of the proxy statement, when it becomes available, and our
other filings with the SEC may also be obtained from us. Free
copies of our filings may be obtained by directing a request to
Tree.com, Inc., 11115 Rushmore Drive, Charlotte, North Carolina 28277, Attention:
Secretary.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on current
expectations about future events. These statements are not
guarantees of future events and involve risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
events may differ materially from what is expressed in such
forward-looking statements due to numerous factors. These
include uncertainties as to the timing of the closing of the sale
transaction; uncertainties as to whether stockholders will approve
the sale transaction; the possibility that competing offers for the
assets will be made; the possibility that various closing
conditions for the transaction may not be satisfied or waived; and
the effects of disruption from the transaction making it more
difficult to maintain relationships with employees, customers and
other business partners. Further information and risks regarding
factors that could affect our business, operations, financial
results or financial positions are discussed from time to time in
Tree.com's SEC filings and reports, and will be discussed in the
proxy statement that Tree.com will provide to stockholders in
connection with a special meeting to approve the transaction. We
want to caution you not to place undue reliance on any
forward-looking statements. We undertake no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise.
MEDIA CONTACT:
Nicole Hall
(704) 943-8463
Nicole.hall@tree.com
SOURCE Tree.com, Inc.