Media and Internet company IAC, or InterActiveCorp, on Monday said it is buying Angie's List Inc. with the aim of melding the consumer reviews company with its HomeAdvisor business and creating a new publicly traded enterprise.
The combined company will be called ANGI Homeservices Inc. and will keep both the Angie's List and HomeAdvisor brands.
Founded by Angie Hicks in 1995, Angie's List lets users research, shop for and rate local plumbers, home cleaners and other service providers. HomeAdvisor.com offers resources for home repair and improvement projects, such as helping find the average project cost across the country and finding professionals for the work.
It's a merger IAC first proposed in 2015, which Angie's List rejected, saying the per-share offer of $8.75 was too low. But sales at Angie's List have been sliding, and in November it said it was exploring "strategic alternatives."
Under the deal announced Monday, Angie's List stockholders will get either one share of ANGI Homeservices Inc., or $8.50 in cash, for each share of Angie's List they own. The cash portion of the deal is capped at $130 million.
At $8.50 a share, the deal values Angie's list at about $505 million.
New York-based IAC, which is controlled by media mogul Barry Diller, will own between 87% and 90% of ANGI Homeservices Inc., depending on how many Angie's List shareholders take cash instead of stock in the combined company.
HomeAdvisor CEO Chris Terrill will become chief executive of ANGI Homeservices Inc., which will be based at HomeAdvisor's headquarters in Golden, Colo.
Shares in Indianapolis-based Angie's List surged more than 42% to $8.39 in extended trading after the deal was announced.