IAC has announced plans to purchase Angie’s List and combine it with its own HomeAdvisor site to create a new company that will trade on the public markets. The new firm will be called ANGI Homeservices Inc.
Angie’s List investors can chose between shares in the new firm or a buy-price of $8.50 in cash for each share they own.
The most IAC would pay out in cash would be $130 million.
With the $8.50 share price, the deal represents a 44 percent premium over Angie’s List’s closing price on Monday (May 1). All in all, the deal would value Angie’s List at $500 million
Angie’s List is a well-known service that provides a directory and recommendations of service workers. Currently it has more than five million members and 55,000 service professionals. HomeAdvisor acts as an Uber-like platform for such professionals. It has served nine million homeowners and 156,000 service providers.
In a release, the firms affirmed that together they have North America’s biggest network of “active, high quality service professionals,” collectively up 24 percent year-over-year in the first quarter.
IAC, in November 2015, made an unsolicited buyout offer for Angie’s List, but the proposal was rejected.
Upon closing of the transaction, IAC will hold between approximately 87 percent and 90 percent of the combined company’s equity and about 98 percent of its total voting power.
Chris Terrill, chief executive of HomeAdvisor, will be CEO of the combined company. IAC CEO Joey Levin will be chairman.
The transaction is expected to close in the fourth quarter.