American media and internet company IAC (IAC) will buy Angie's List Inc (NASDAQ: Angie's List [ANGI]) and join the consumer-review site with IAC's HomeAdvisor to create a new, listed company.
Angie’s List investors will receive either one Class A common share in the newly formed ANGI Homeservices Inc, or $8.50 in cash for each share they own.
"The combined business, which will maintain both Angie’s List and HomeAdvisor brands, will offer unparalleled scale and product breadth to match homeowners with service professionals in the $400 billion domestic home services market," IAC said in a statement.
"The transaction has been approved by the Boards of Directors of both companies, and is expected to close in the fourth quarter of 2017."
The deal values Angie at more than $500 million, which is 44 percent higher than the company's market capitalisation when it closed yesterday at $5.89.
Angie’s List provides a directory and recommendations for tradespeople and has more than five million members and 55,000 service providers.
HomeAdvisor is a website and app provider that offers free tools and resources for home improvement, repairs and maintenance.
More than nine million homeowners are registered with the HomeAdvisor as well as 156,000 service providers.
"The transaction combines the power of Angie’s List’s well-known brand and large audience with IAC’s home services category leader HomeAdvisor," IAC said.
IAC tried to buy Angie in 2015 but the offer was rejected.