Answers.com to be taken private for $127 mn
Answers Corp, owner of the popular Q&A website, agreed to be bought by private-equity firm Summit Partners for about USD 127 million in cash.
February 03, 2011 / 23:06 IST
Answers Corp, owner of the popular Q&A website, agreed to be bought by private-equity firm Summit Partners for about USD 127 million in cash.
Summit Partners, which will execute the acquisition through its portfolio company, AFCV Holdings, offered USD 10.50 a share for the parent of Answers.com.The offer price represents a premium of 18% to the the stock's Wednesday close.Answers Corp's board unanimously approved the merger and recommended stockholders vote for the deal.The company operates user-generated questions-and-answers database through its website Answers.com, and earns almost all of its revenue from advertising on the website.According to research firm comScore, Answers.com had about 52 million unique visitors in the United States in December 2010 and 87 million worldwide. It was also ranked number 20 among the top US web properties for that month.UBS Investment Bank is acting as the financialf adviser for New York-based Answers.com. Jefferies is serving as financial adviser for AFCV Holdings.Shares of Answers Corp rose as much as 17% to touch a year-high of USD 10.45 in Thursday morning trade on Nasdaq. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
