Angie’s List, Inc helps ease its collection of service providers and transactions between over three million consumers nationwide in about 720 classes of service, ranging from home improvement to healthcare.
Advertisement
IAC/InterActiveCorp, based in NY, offered an all-cash deal that amounts to $8.75 per share, or 13 percent above Angie’s List closing price on Wednesday.
Angie’s has risen to $8.68 after hours. It proposes a merger of Indianapolis-based Angie’s List with IAC’s HomeAdvisor unit through a tax-free stock-for-stock exchange. IAC says that the deal would combine a highly trafficked site and fee-paying service professionals with its home services platform. “It would have the ability to deploy technological innovations across an enormous footprint, creating an unmatched ability to deliver the best experience to the largest number of consumers and service providers alike”, read the letter.
The outright rebuff is a bold move by Angie’s List, which has posted mostly losses since going public in 2011. “However, we have been unable to develop any meaningful dialogue with you for many months now and were disappointed by your unwillingness to continue discussions with us following our meeting”, Levin wrote. The company has a market cap of $463.45 million and a price-to-earnings ratio of 40.82. According to the letter, Angie’s List executives met with Levin and IAC on October 23. The company’s stock price has been on an upward trend since July, when it hit a low of $3.76 per share.
Angie’s List issued a statement late Wednesday saying it will review and evaluate the offer.
Advertisement
IAC is a media and Internet company comprising more than 150 brands, including Ask.com, About.com, Match.com, Vimeo and HomeAdvisor.
