NerdWallet, the personal finance company known chiefly for its website that provides consumers guidance on credit cards, loans and more financial products, is getting into the mortgage brokerage business with the acquisition of Next Door Lending.
Per the terms of the deal, NerdWallet is paying $1 million in cash for Next Door Lending’s outstanding equity interests. NerdWallet Chairman Tim Chen revealed during an earnings call this week that the deal, which closed on Oct. 1, is projected to add 1-2 percentage points of growth to the company’s fourth-quarter revenue.
“We believe this acquisition will allow us to offer shoppers more hands-on guidance and creates another opportunity for us to build deep and direct relationships with our consumers,” Chen said.
Chen expanded on the details of the transaction in a letter sent to NerdWallet’s shareholders.
“I have really enjoyed getting to know Next Door Lending’s principals, [President] Doug [Liska] and [CEO] Jonathon [Haddad], through this process: They are kindred spirits who bootstrapped their business and share our focus on operational efficiency, as well as a consumer-first orientation, with the customer reviews to match,” Chen said. “While the upfront deal consideration is small, the strategic alignment presents a significant opportunity for us to drive better outcomes for consumers, lenders and NerdWallet.”
Next Door Lending’s website has already been updated to align with NerdWallet’s branding and colors, with Liska and Haddad still listed as executives. Haddad is also notable for serving as the chairman of the Association of Independent Mortgage Experts (AIME), a position that he took in January this year.
