IAC/InteractiveCorp agreed to buy consumer-recommendation website Angie’s List Inc., intending to combine the business with its own HomeAdvisor online-review network and create a new publicly traded company.
Under terms of the deal, Angie’s List investors can choose either one Class A common share of the new company or $8.50 in cash for each share they own -- with the cash payout capped at $130 million, according to a statement from New York-based IAC, which is controlled by Barry Diller. The new company will be called ANGI Homeservices Inc.
At $8.50 a share, the deal values Angie’s List at more than $500 million, a 44 percent premium over the stock’s closing price of $5.89 Monday in New York. IAC will own 87 percent to 90 percent of the new company, depending on the number of investors who take the cash payout. Angie’s List shares jumped 42 percent to $8.39 in extended trading.