CHARLOTTE — Online loan marketplace LendingTree Inc. announced Monday it has agreed to acquire Ovation Credit Services Inc., which provides credit repair services, for $20.75 million.


The transaction includes $12 million in cash at closing, and contingent consideration payments of up to $8.75 million. The transaction is expected to close by June 30.

Ovation Credit Services, which is based in Jacksonville, Florida, uses a software application that facilitates the credit repair process and is integrated with certain credit bureaus. It also educates consumers on credit improvement via outreach with Ovation case advisors.

LendingTree is committed to helping all consumers meet their financial goals, regardless of where they are in the credit spectrum,” said Doug Lebda, founder and CEO of LendingTree, in a statement.

According to industry estimates, almost one-third of Americans have poor or bad credit.

“By acquiring Ovation Credit Services, LendingTree will be able to better educate consumers about credit management and provide options for those consumers who have struggled with obtaining financing,” added Lebda.

LendingTree closed Monday at $279.35, down 15 cents.

This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism