CHARLOTTE, N.C. - LendingTree Inc. has purchased key assets of HomeSpace Inc. of Englewood, Colo., an Internet network of real estate agents, for $12 million in cash and stock.
Tom Reddin, chief operating officer of LendingTree, said the deal gives the company a strong local Realtor base, a "synergistic" realty product line, a complementary management team with experience in the real estate business, and a platform to expand its Lend-X technology.
"We envision the real estate agents across the country at their desktop, having marketplaces of lenders where their borrower can apply for a loan and receive offers on the spot," he said. "It fits very nicely with LendingTree."
A large percentage of the borrowers looking for mortgages through LendingTree do not have real estate agents, Mr. Reddin said. Through its HomeSpace acquisition, LendingTree can offer and deliver real estate products, creating additional revenue, he said.
LendingTree also announced a $10 million additional round of financing with Capital Z, one of the company's core investors. Mr. Reddin said the funding means the HomeSpace acquisition will have minimal impact on LendingTree's cash position.