Angie’s List Inc (NASDAQ:ANGI) stock was flying high on Tuesday following news of a buyout.
The buyout offer will have Angie’s List Inc combining with IAC/InterActiveCorp’s (NASDAQ:IAC) HomeAdvisor brand. The deal will result in the creation of ANGI Homeservices Inc. The new company will be publicly traded and will continue to operate the Angie’s List and HomeAdvisor brands.
Shareholders of Angie’s List Inc stock will have two options in the buyout. They can either get a new share of ANGI Homeservices Inc. or $8.50 in cash per each ANGI share that they own. The Class A shares of the new common will be worth one vote each.
Angie’s List Inc and IAC/InterActiveCorp’s Boards of Directors have both given their approval for the deal. ANGI shareholders will also have the ability to vote on the merger as part of its customary closing conditions.
Angie’s List Inc says that it expects the deal with IAC/InterActiveCorp’s HomeAdvisor brand to be completed in the fourth quarter of 2017. However, it will first need approval from regulators.
If the deal between Angie’s List Inc and HomeAdvisor goes through, the new company will be led by HomeAdvisor CEO Chris Terrill. The new company will also have its headquarters in HomeAdvisor’s Golden, Colorado location.
Joey Levin, the CEO of IAC/InterActiveCorp will serve as the Chairman of the Board of Directors for the new company. Thomas Evans, the current Chairman of the Board of Directors at Angie’s List, as well as Angie Hicks, the co-founder and CMO of ANGI, will also join the new company’s Board of Directors.
ANGI stock was up 60% as of Tuesday morning.