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Deal Detail

Bankrate, Inc. to Red Ventures

Internet/Ecom/Jul 2017
EV / LTM EBITDA
11.4x
EV / LTM Sales
-
Enterprise Value
$1.4B
Primary Source
Morgan Stanley

All Observations

Source-specific multiples and notes for this transaction.

Primary?Source TypeFairness Opinion / SourceAdvisorSource YearEnterprise ValueEV/SalesEV/EBITDAEV/Fwd EBITDANoteCitation
Primaryfairness opinionSFLY FOMorgan Stanley2019$1.4B-11.4x--Open
-fairness opinionRATE FOJPMorgan2017$1.4B--10.5xTarget's own FO. EV and multiple are DERIVED, not disclosed: J.P. Morgan states no implied enterprise value or implied transaction multiple for Bankrate itself. EV $1,374m = 89,694,479 shares outstanding at the August 14, 2017 record date x $14.00 merger consideration ($1,255.7m equity) + $118m net debt (the estimated net debt balance J.P. Morgan subtracted in its DCF, as of March 31, 2017); over Base Case 2017E Adjusted EBITDA of $131m that is 10.5x. Basic shares only - on the fully diluted EV of $1,391m cited in the SFLY FO the same $131m gives 10.6x. Carried as forward EBITDA because 2017E was a current-year estimate at the July 2, 2017 opinion date; Base Case Adjusted EBITDA per the supplemental 8-K reconciliation: 2017 $131m, 2018 $145m, 2019 $175m. Advisor range is J.P. Morgan's applied EV / 1-year forward EBITDA range of 7.5x-11.5x from the Selected Transaction Analysis; its Public Trading Multiples range was 9.0x-13.0x EV / 2018E EBITDA. Not primary: no EV/LTM EBITDA here, so the SFLY FO citation (EV $1,391m, 11.4x LTM) keeps primary, same treatment as the BKS FO row.Open