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Fairness Opinion Detail

RATE FOOpen source

Bankrate, Inc. to Red Ventures

Internet/Ecom/Jul 2017/JPMorgan

Deal Information

Target
Bankrate, Inc.
Acquiror
Red Ventures
Sector
Internet/Ecom
Target Type
Public
Acquiror Type
Strategic
Advisors
JPMorgan

Transaction Metrics

Enterprise Value
$1.4B
EV / LTM Sales
EV / LTM EBITDA
11.4x
EV / Fwd EBITDA

Advisor Transaction Comparables

Comparable transactions cited by the advisor, excluding the subject transaction.

Advisor: JPMorgan

EV / 1-year forward EBITDA selected range: 7.5x - 11.5x

12 comps
Feb 2017Operating business of Yahoo! Inc.
(1) Based on renegotiated transaction value announced on February 21, 2017.
Verizon Communications Inc.---5.7x
Oct 2016Everyday Health, Inc.Ziff Davis, LLC---7.7x
Jul 2016Operating business of Yahoo! Inc.
(2) Based on original transaction value announced on July 25, 2016.
Verizon Communications Inc.---7.3x
Apr 2016Ancestry.com Inc.
(3) Based on EBITDA for the 12 months ended March 31, 2016.
Silver Lake Partners---9.8x
Nov 2015Insurance business of Bankrate, Inc.All Web Leads, Inc.---7.5x
May 2015AOL Inc.Verizon Communications Inc.---8.5x
Sep 2014Move, Inc.News Corp.---24.5x
Sep 2014Conversant Inc.Alliance Data Systems Corp.---10.0x
Aug 2014Classified Ventures, LLC (Cars.com)
(4) Based on expected revenue and EBITDA for 2014 at the time of the announcement.
Gannett Co., Inc.---11.6x
Mar 2014Apartments.com business of Classified Ventures, LLCCoStar Group, Inc.---16.6x
Oct 2012Ancestry.com Inc.Permira---8.1x
Aug 2012About GroupIAC/InteractiveCorp---8.6x
Mean--10.5x
Median--8.6x

DCF Assumptions

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

JPMorgan

Open
WACC
10.5% – 12.5%
Terminal method
Perpetuity growth
Terminal assumption
2.5% – 3.5%
Forecast basis
Bankrate management Base Case (High and Low Sensitivity Cases excluded at management's di… more

Bankrate management Base Case (High and Low Sensitivity Cases excluded at management's direction)

Forecast period
remainder of 2017 through calendar 2026
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