HomeAdvisor Parent to Acquire Angie's List
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."
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.