As part of a merger agreement, IAC's HomeAdvisor unit would combine with Angie's List and then spin off into a new publicly traded company called ANGI Homeservices Inc. IAC believes the combination of the two platforms would create one of "unparalleled scale and product breadth" and a key part of the $400 billion domestic home services market.
IAC and its HomeAdvisor unit will pay Angie's stockholders $8.50 per share in cash or one share of Class A common stock of ANGI Homeservices.
Angie's List has been exploring strategic alternatives since November 1, 2016, as doing so would unlock the "full potential" of its platform.
Oppenheimer: 'Fair' Deal
Oppenheimer's Jason Helfstein commented in a research report that the deal appears to be "fair" for all parties as HomeAdvisor could make up the "substantial" 44 percent premium in the acquisition price tag with operational synergies.
HomeAdvisor could also be able to leverage Angie's List 92 percent aided brand awareness in increasing conversions and also Angie's List's traffic could be more easily monetized using its Instant Bookings & Instant Connect tools.
Meanwhile, Angie's List's investors received a "lifeboat" as the company's prospects as a stand-alone entity are limited without new financing.Related Links: 25 Stocks Moving In Tuesday's Pre-Market Session Why The Street Believes Kate Spade Will Be Acquired, But Has Doubts On Angie's List ___________ Image Credit: By ~~×α£đ~~es (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.