HomeAdvisor Parent to Acquire Angie's List

Posted: Updated:
INDIANAPOLIS -

New York-based IAC (Nasdaq: IAC), the parent of HomeAdvisor, has announced plans to acquire Indianapolis-based Angie's List Inc. (Nasdaq: ANGI) and combine the two entities into one publicly-traded company. The deal has been approved by both companies' boards of directors and is expected to close in the fourth quarter.

The new company, ANGI Homeservices Inc., will maintain both the Angie's List and HomeAdvisor brands. The deal remains subject to approval by Angie's List stockholders and regulators. 

"After completing our comprehensive strategic review, we have found a true partner in IAC and HomeAdvisor that we believe will create tremendous shareholder value for Angie’s List," said Thomas Evans, chairman of Angie’s List. "Together, we uniquely benefit from the powerful combination of two market leaders, who, by joining forces, can drive incredible innovation, customer satisfaction and category growth."

The definitive agreement between IAC and Angie's List says, if the deal is approved, Angie's List stockholders will have the option to receive either one share of ANGI Homeservices common stock or $8.50 per share in cash for each share of Angie's List stock they own. The total amount of available cash in the transaction will be capped at $130 million. 

The combined company will be based out of HomeAdvisor's headquarters in Golden, Colorado. HomeAdvisor Chief Executive Officer Chris Terrill will assume the role of CEO of the ANGI Homeservices Inc. Joey Levin, CEO of IAC will serve as chairman of the company's board of directors, with Evans and Angie's List Co-Founder and Chief Marketing Officer Angie Hicks joining the board as well.

Angie's List first rebuked IAC's offer to acquire the company in November of 2015. IAC, which also owns digital properties including Tinder, Ask.com, the Daily Beast and College Humor, put in a bid of around $512 million in cash at the time. In rejecting the offer a year-and-a-half ago, CEO Scott Durchslag said it "dramatically undervalues the company and its long-term standalone prospects."

About a year ago, HomeAdvisor launched a new office in downtown Indianapolis and toward the end of the year, announced an expansion in the city.

Angie's List has been a long-time beacon of the state's growing tech scene and Angie Hicks last month was named 2017 Trailblazer Award winner for the annual Mira Awards by the state's high tech initiative, TechPoint. She received the trophy this weekend and will be featured along with other winners this week on Inside INdiana Business Television.

  • Perspectives

    • The Evolution of Business: From Bottom Line to Value Creation And Impact

      In today's world, consumers want to know how corporations, as a whole, are taking a stand. In fact, customers are 43 percent more likely to purchase a product from a company they know is committed to social value. It's not just consumers pushing this trend. Financial service industry leaders, like KeyBank's Beth Mooney and BlackRock's Larry Fink, are challenging business owners and the C-Suite to rethink their economic impact, environmental footprint and social conscience.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • St. Vincent Announces Layoffs

      St. Vincent Health says it has laid off 85 employees throughout the state. In a statement to Inside INdiana Business, St. Vincent cites a rapidly-evolving healthcare environment as a reason for the workforce reduction. 

    • Indy Firm Taps Appirio Exec as CEO

      An Indianapolis-based design and innovation consulting firm has named a new chief executive officer. Studio Science says Steve Pruden, who most recently served as senior vice president of human resources with Indy tech company Appirio, will lead the company.

    • The work is expected to be complete by August 2020.

      Jasper Company Earns Military Contract

      Jasper-based Krempp Construction has earned a nearly $17 million military contract. The deal involves the construction of new buildings at Naval Support Activity Crane in southern Indiana, as well as the demolition of 11 buildings. The contract with the U.S. navy calls on Krempp to construct a shipping and receiving building, as well as an ammunition production building for plating metal munition parts. The deal also involves railroad, utility, lighting, infrastructure and...

    • Governor Eric Holcomb will be the keynote speaker at this week's event.

      Holcomb to Make FFA Announcement

      Governor Eric Holcomb will Monday join officials from the National FFA Organization and AgriNovus Indiana to make an announcement regarding this year's National FFA Convention & Expo in downtown Indianapolis. The FFA says the announcement will impact 650,000 student members nationwide.

    • Fishers to Break Ground on 'The Yard'

      Officials will Thursday break ground on a $110 million culinary and entertainment hub in Fishers. When complete, The Yard at Fishers District will feature restaurants and a culinary accelerator, in addition to hotel, residential and retail space.