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NEW YORK, New York – The Rupert Murdoch-controlled Fox Corporation, which owns and operates the Fox News Channel, the Fox TV network, and Fox Sports on Monday announced a takeover of San-Francisco-based Consumer lender Credible Labs.

The deal is worth $585 million in Australian dollars ($397 million USD).

Under the terms of the deal, U.S. based-Credible Labs, which is listed on the Australian Stock Exchange, said its shareholders will receive AUD$2.21 in cash per CHESS depository interest (CDI), which represents A$55.25 per share of common stock in Credible.

The price represents a 31% premium to Credible’s closing price on the day prior to Fox’s initial May 29 proposal.

Following the equity purchase of approximately $USD 265 million, FOX will commit up to $USD 75 million of growth capital to Credible over approximately two years.

Credible enables consumers to compare instant, accurate pre-qualified rates from multiple financial institutions across student loans, personal loans and mortgages, which it says helps consumers save money and make better financial decisions.

“The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasizes direct interactions with our consumers to provide services they want and expand their engagement with us across platforms. 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,” Fox Corporation Executive Chairman and Chief Executive Officer Lachlan Murdoch said Monday.

As part of the transaction, and subject to certain approvals from the Australian Securities Exchange (“ASX”), Credible Founder and CEO, Stephen Dash, will exchange shares equal to 33% of Credible’s outstanding common stock into units of a newly created Fox subsidiary. It is the other 67% of Credible shares that will be picked up by Fox. Mr. Dash will continue to serve as CEO of Credible.

“Fox Corporation’s record of innovation and focus on audience engagement will further enhance Credible’s position as a leading consumer finance marketplace in the United States, creating opportunities for organic growth and the expansion of the Credible platform,” Dash said Monday.

The transaction, which is expected to close in the fourth quarter of this year, is subject to the approval of Credible shareholders,meaning a majority vote of all shareholders other than Mr. Dash and his affiliates, and is subject to the receipt of regulatory approvals (including certain approvals from the ASX) and other conditions.

Credible will join Fox Corporation’s diverse digital offerings that also include exclusive content via the popular Fox Nation service, the pay-per-view functionality on the Fox Sports app, live and on demand content on Fox Now, and leading news sources including FoxNews.com, FoxBusiness.com and the websites of local FOX Television Stations.

Kirkland & Ellis LLP and Herbert Smith Freehills are serving as U.S. and Australian legal counsel, respectively, to Fox Corporation.

(Photo credit: Danielle Smith | Fairfax Media).