Internet Brands to be acquired for $640 mln
(Reuters) - Private equity firm Hellman & Friedman on Monday agreed to acquire internet media company Internet Brands INET.O for $640 million in cash.
The private equity firm's offer of $13.35 a share was 46.5 percent more than the company's last closing price.
Internet Brands operates a slew of websites on themes as varied as automobiles, careers, health issues and money and business. Most of its revenue comes from online advertising.
The company said its largest shareholder Idealab, which helps set up technology start-ups, has entered into a voting agreement with Hellman & Friedman for the merger.
Idealab owns about 19 percent of the outstanding shares of Internet Brands and has 64 percent voting power.
Financing commitments for the deal have been obtained from Bank of America (BAC.N), GE Capital, BMO capital markets and RBC Capital markets, the company said in a statement.
The transaction, which is subject to shareholder approval, is expected to close in the fourth quarter of this year.
Hellman & Friedman had acquired building products maker Associated Materials earlier this month for $1.3 billion.
Shares of Internet Brands, which have gained about a quarter in the last 12 months, rose 46.5 percent to Hellman and Friedman's offer of $13.35 in morning trade on Nasdaq.
(Reporting by Siddharth Cavale in Bangalore; Editing by Jarshad Kakkrakandy)