Insure.com, Inc., has sold its Insure.com brand name and related media assets for $16 million in cash to QuinStreet, Inc. The Insure.com, Inc., company intends to change its corporate name to Life Quotes, Inc., and will continue its business under the Life Quotes and Consumer Insurance Guide brand names.
The company will retain all of its remaining balance sheet assets, national brokerage contracts with life insurance companies, licensed insurance agents, call center operations, customer and prospect lists, and nearly all of its current inbound affiliate and traffic partnerships.
The Insure.com name and Web site originally were acquired in 2001 for $1.6 million. Revenue from this asset sale transaction will be recorded as an extraordinary, one-time gain in the fourth quarter of 2009.
"We have sold our Insure.com name and specified Web site content in a significant cash transaction we think is in the best long-term interest of our shareholders," says Robert Bland, chairman and CEO of the new Life Quotes, Inc. "This transaction has other benefits to our shareholders and employees in that it will allow us to focus on our brokerage operation and insurance marketing businesses. As a result of this transaction, we are projecting reduced revenues of approximately 10 to 15 percent with increased marketing expenses for the next two to six quarters as we rebuild under a new brand name and move from a content-based Web site to a transaction-based Web site."
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