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InsWeb Corp. (NASDAQ: INSW), an online insurance comparison shopping marketplace, announced its agreement to acquire Potrero Media Corp., a privately held performance marketing agency.
Potrero Media, led by Rick Natsch (former Quinstreet business development/marketing), is expected to help expand InsWeb into health and life insurance lead generation categories. Potrero Media will immediately contribute hundreds of clients, more than 1,500 insurance relevant websites, command of millions of search terms, and its unaudited revenues (2009) of approximately $12.3 million.
Hussein Enan, Chairman and CEO of InsWeb, in today’s announcement highlighted his perceived value in the acquisition of Potrero Media: Calling Potrero, “a formidable player in search marketing and online lead generation for the insurance industry” and “significantly [expanding] our (InsWeb Corp.) business beyond the auto insurance sector.”
The terms of the InsWeb/Potrero Media deal include total consideration of up to $12 million, consisting of the following:
- $6 million in cash at closing
- $1.5 million in cash on the one-year anniversary of closing
- $1.5 million in InsWeb stock (subject to resale restrictions)
- Up to $3 million in potential performance-based payments over three years
The deal is expected to close in the fourth quarter of 2010.
About Bill Rice