NU Online News Service, March 5, 2004, 12:25 p.m. EST – Quotesmith.com says it has agreed to buy the assets of Life Quotes, Inc., a life insurance agency.[@@] Terms of the agreement were not disclosed.
Quotesmith.com, an online insurance broker in Darien, Ill., also announced it has agreed to sell 2.4 million shares of its common stock to Zions Bancorporation, Salt Lake City, Utah, for $5.50 net per share, thus raising $13 million in new capital. That deal is contingent upon the closing of the agreement to buy the assets of Life Quotes, in Evergreen, Colo.
The transaction would give Zions a 32% equity interest in Quotesmith and one seat on its board.
Quotesmith says its expects its acquisition of Life Quotes would double its revenues and speed its move to profitability. Quotesmith reported a net loss of $1.3 million last year on sales of $9.7 million.
The combined firm would serve 200,000 policyholders.
If approved by shareholders, Quotesmith expects to close the deal in the 2nd quarter.