Online marketplace and classified advertising business Trade Me has entered into an agreement to acquire an online insurance comparison website LifeDirect based in Wellington, for an undisclosed sum.
In its annual financial result, the acquirer said that the due diligence process has been completed and it is most likely the transaction, which is conditional, will close in September this year.
Trade Me CEO Jon Macdonald said that the company agreed to purchase LifeDirect, as it believes in providing consumers with one place to compare insurance products easily and efficiently.
"It fits well with our core purpose of connecting two parties to undertake a transaction or form a relationship," Macdonald added.
The acquirer said New Zealand presents an attractive insurance market place due to greater internet usage.
Since 2005, LifeDirect has been marketing life and health insurance products and services and recently Trade Me posted a net profit of $78.6m after tax, with an increase of 4% for the full year, while its revenues rose by 15% to $164.1m.