CancerInsurance.com sold for 7 figures.
A seven figure sale for the domain CancerInsurance.com was unveiled today, by domain investor and financial researcher, George Kirikos.
According to the financial reports of Tranzact, they acquired CancerInsurance.com last year, for a deal amounting to $3.1 million dollars, of which $1.1 million dollars was cash.
However, there is a contingency clause in that same statement, which according to George Kirikos might bring the total amount paid for the domain to a staggering $7.9 million dollars:
“On November 6, 2015, Tranzact acquired the domain name CancerInsurance.com for a purchase price of $3.1 million, which is included in other intangible assets.
The purchase price included cash of $1.1 million and a liability of $2.0 million for contingent consideration that is payable if EBITDA exceeds amounts defined in the purchase agreement between November 6, 2016 and May 6, 2018.
The maximum amount of the contingent consideration is $6.8 million”
What exactly does Tranzact do?
According to their web site:
“TRANZACT is the premier marketplace for the distribution of direct-to-consumer Insurance products, reaching over 150 million consumers a week. TRANZACT has two business models: a brand focused model and a consumer facing one. For our brand model, we support large insurance companies in building out their own direct-to-consumer distribution capabilities. For our consumer-facing model, we build vertically focused platforms that allow consumers to shop and compare different companies to best meet their insurance needs.”
It’s interesting that Tranzact operates from a dot .net domain name; the dot .com is taken by a transportation services company.
Many thanks to George Kirikos for uncovering yet another large domain sale! 😀
Insurance names are so underrated. Agents can make 10k in commissions on 1 policy per year. Take a group of 40 employees who have health insurance that is what they make, yet they balk @ buying a good name. This name will do well nationally and will only cut into the local insurance agent who has 0 presence in the local market.. Hint state + insurance name.
lots of people with cancer are underinsured so i can see how this would be worth a ton.
don’t be underinsured and don’t get cancer.
I noted the the George Kirikos twitter feed but had to go out, was reminded again by your blog post, Thank you.
Was very surprised to find the CancerInsurance com Chinese characters unregistered 癌保險 & 癌症保險 although the alphabetical version had gone. Luck on this occasion you did not check it out.
DG,
I know the seller, this deal is not a domain-only transaction, it’s the sale of a website/business.
He has a fully-fledged cancer insurance business on it. He mentioned it also in his LinkedIn profile as a new “liquidity event” 🙂
That’s why the buyer refers to expected Ebitda figures as a parameter for a contingent/deferred payment.
Anyway, nice sale!