Quotesmith.com, Darien, Ill., has reached a definitive agreement to acquire the assets of privately held Life Quotes Inc., an Evergreen, Colo.-based life insurance agency. Terms of the agreement were not disclosed. Quotesmith.com also has agreed to sell 2.36 million shares of its common stock to Zions Bancorporation for $5.50 net per share, thus raising $13 million in new capital, which is contingent upon the closing of the Life Quotes asset acquisition. After the completion of this capital transaction, Quotesmith.com will have 7.3 million outstanding common shares, with Zions holding a 32% equity interest and one board seat.
The Life Quotes acquisition is expected to double the revenues of Quotesmith.com and accelerate the Company's path to profitability. The combined firm will serve an installed customer base of 200,000 policyholders.
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