Fox News owner Fox Corp. (FOX) reached a deal to acquire a two-thirds stake in fintech company Credible Labs in a deal worth $340 million.
Under the terms of the deal, Fox will acquire 67% of Credible, which is listed on the Australian Securities Exchange, for $265 million in cash, a 31% premium to the company's stock price on May 29.
Also, Fox will commit a further $75 million in capital over two years to developing Credible, which is a consumer finance marketplace.
The deal, which is expected to close by the end of the year, involves a stock exchange of 33% of Credible's stock for a stake in a new subsidiary of Fox. The deal is also subject to approval from the Australian Securities Exchange.
"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," said Fox Corp. Chairman Lachlan Murdoch.
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