Fox reached an agreement to buy a 67% stake in San-Francisco based and Australian-listed Credible Labs for $265 million.
The company's platform helps users browse mortgages and school loans from multiple financial institutions. Fox cited its desire to better connect with and interact with consumers as part of its digital strategy.
"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," Fox CEO and Chairman Lachlan Murdoch said in a statement.
Fox's purchase occurred at 2.21 Australian dollars ($1.50) per share, which represents a 31% premium to the Credible's closing price prior to an initial proposal in late May.
Why It's Important
Credible's industry-leading experience, coupled with Fox's global reach, will "provide greater impact and scale" for consumers, according to Credible CEO and founder Stephen Dash.
Under Fox's umbrella, Credible said it faces new organic growth opportunities and the ability to further expand its platform to offer better scale for consumers.
Fox's majority purchase of Credible is expected to close before the start of 2020 and remains subject to customary closing conditions. When the transaction closes, Fox said it will invest $75 million in growth capital in Credible over the coming two years.
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