IAC’s HomeAdvisor and Angie’s List Inc. have entered into a definitive agreement to become a new publicly traded company called ANGI Homeservices Inc. The combined business, which will maintain both Angie’s List and HomeAdvisor brands, will join forces to match homeowners with service professionals in the $400 billion domestic home services market.

The transaction has been approved by the boards of directors of both companies, and is expected to close in the fourth quarter of 2017.

 Under the terms of the agreement, Angie’s List stockholders will have the right to receive either one share of Class A common stock of ANGI Homeservices Inc. or $8.50 per share in cash, for each share of Angie’s List stock that they own, with the total amount of cash available in the transaction capped at $130 million. Depending upon the number of Angie’s List stockholders electing to receive cash, upon completion of the transaction, IAC will own between approximately 87 percent and approximately 90 percent of the equity value of the combined company.

The transaction combines Angie’s List’s well-known brand and large audience with IAC’s home services category leader HomeAdvisor.

HomeAdvisor CEO Chris Terrill will assume the role of CEO of ANGI Homeservices Inc., whose headquarters will be based out of HomeAdvisor’s Golden, Colo., location. IAC CEO Joey Levin will also serve as chair of the board of directors. Thomas R. Evans, current chair of the board of directors of Angie’s List, and Angie Hicks, Angie’s List co-founder and CMO, are expected to join the board of ANGI Homeservices Inc.

“Both Angie’s List and HomeAdvisor have built impressive businesses based on delivering homeowners and home service professionals incredible value,” said Terrill. “We’ve only just scratched the surface of this tremendous market opportunity, given 90 percent of home improvement transactions are still generated via word-of-mouth. By combining HomeAdvisor and Angie’s List’s complementary strengths, the combined company will be able to leverage its joint models and resources to not only accelerate market penetration, but also continued online conversion of that marketplace.””Since 1995, Angie’s List has set the bar for enabling quality home services experiences for millions of consumers and service pros. I’m thrilled that IAC and HomeAdvisor share our vision for what’s possible when it comes to the home services category’s massive potential,” said Hicks. “Together, we will relentlessly elevate home services experiences for an even broader base of customers.”

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