Answers.com is to be acquired by AFCV Holdings, LLC, a portfolio company of growth equity investor Summit Partners, for a total cash consideration of approximately $127 million. AFCV will acquire all outstanding shares of Answers.com common stock, Series A convertible preferred stock and Series B convertible preferred stock. Under the terms of the agreement, Answers.com common stock shareholders will receive $10.50 in cash for each outstanding share of common stock they own. The holders of Series A and Series B convertible preferred stock will also be entitled to receive cash consideration based on the number of the common stock into which those shares are convertible at the time of the merger.

“This is a great outcome for our shareholders,” said Bob Rosenschein, Founder, Chairman and CEO. “After an exciting six years as a public company, we are very pleased to achieve considerable value for our investors. The acquisition price of $10.50 per share represents a significant cash premium of approximately 33% over our 90-day volume-weighted average closing stock price.”

The board of directors of Answers.com has unanimously approved the merger with AFCV Holdings, LLC and recommends that the stockholders of Answers.com vote to adopt the merger agreement. Answers.com expects to hold a special meeting of stockholders to consider and vote on the proposed merger and merger agreement as soon as practicable after the mailing of the proxy statement to its stockholders.
The transaction has fully committed financing and is expected to close in the second quarter of 2011, subject to the satisfaction of customary closing conditions, including the approval of Answers.com stockholders and receipt of regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

UBS Investment Bank is acting as exclusive financial advisor and Kramer, Levin, Naftalis & Frankel, LLC as legal advisor to Answers.com. Jefferies & Company, Inc. is serving as financial advisor and Wilson Sonsini Goodrich & Rosati, Professional Corporation as legal advisor to AFCV Holdings.

USA, New York, NY

Match.com, an operating business of IAC, announce has acquired OkCupid, the U.S. online dating company, for $50 million in cash, plus potential future payments contingent upon performance.

Over the past 18 months, OkCupid has experienced substantial member growth by establishing a more casual, low-hurdle dating environment that has resonated with younger adults.  Unlike IAC’s other dating sites, OkCupid generates revenues primarily through advertising, and over the last year has been the fastest growing dating site in the advertising-based category.

“OkCupid has been a real innovator in our space, and the dating environment they’ve created has struck a chord with a younger demographic.  I think it’s clearly the best site in its competitive set, with better features and a more distinctive personality than any other advertising-based site,” said Greg Blatt, CEO of IAC.  “We know that many people who start out on advertising-based sites ultimately develop an appetite for the broader feature set and more committed community, which subscription sites like Match.com and Chemistry.com offer, creating a true complimentary relationship between our various business models.  2010 saw record growth both for Match and OkCupid, and we believe coordinating the adjacent business models will help fuel continued growth for both.  This acquisition therefore goes a long way toward our objectives of bringing new people into the online dating world, offering the ability to meet in whatever type of online setting, and at whatever commitment level, our members desire, and facilitating a seamless evolution of the online dating experience without ever having to leave our portfolio of sites.”

“We are excited to join forces with Match because it is clear that no company is more committed to helping people find relationships,” said Sam Yagan, co-founder and CEO of OkCupid.  “This marriage offers us the best of both worlds: the autonomy to continue pursuing OkCupid’s original vision and the ability to leverage Match’s reach and expertise to grow even faster.”Sam Yagan, the co-founder and CEO of OkCupid will continue to run the business and oversee all day-to-day operations from OkCupid’s office in New York.

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Related articles:

• Match.com acquires Singlesnet Posted on February 26, 2010