Online home finance network FiNet.com Inc. said it has acquired certain
operations and assets of Lowestrate.com for 1.4 million shares of
FiNet.com stock.
FiNet is trading in the $3.25 range.
The acquisition will allow FiNet.com to expand its geographic coverage,
creating an e-commerce franchise that reaches across America, the company
said. The acquisition will enable FiNet.com to establish a second electronic
transaction center in Pennsylvania to better serve its customers in the
central and eastern regions of the United States.
Based on second quarter 1999 actual results, the annualized additional
revenue to FiNet.com will be approximately $2.5 million. Lowestrate.com has
closed nearly 1,400 mortgages with an aggregate value exceeding $182 million
in the year ending December 1998.
FiNet.com said it now expects its combined consumer channel to be able to
originate mortgages in nearly all states.
“This acquisition will greatly increase our geographic diversification,
helping FiNet.com to become one of the most comprehensive online mortgage
providers in the country,” said Mark Korell, chairman and CEO of FiNet.com.
Lowestrate.com is the Internet presence of Security National Mortgage Corp.
FiNet.com offers automated financing solutions directly to consumers through
its online home financing Web site and to
mortgage broker businesses through Monument Mortgage.