Hellman & Friedman to buy Internet Brands for $640 million
21 September 2010
Internet media company, Internet Brands, Inc. yesterday said that it would sell itself to an affiliate of private equity investment firm Hellman & Friedman Capital Partners VI, for approximately $640 million.
Founded in 1998, California-based Internet Brands is a unique Internet media company that owns and operates more than 100 websites that are leaders in their vertical markets.
It primarily operates web sites in the automotive, careers, home, money and business, shopping, and travel and leisure domains, the combined viewership of which is stated to be approximately 62 million unique visitors per month.
These web sites include CarsDirect.com, Autos.com, NewCarTestDrive.com, Ford-Trucks.com, Honda-Tech.com, HospitalJobsOnline.com, CVTips.com, GrooveJob.com, ModelMayhem.com, PuppyDogWeb.com, TrekEarth.com and others.
The company had posted revenues of $99.8 million last year and net income of $12.4 million. For the second quarter of this year, it reported revenues of $28.1 million and net income of $4.6 million.
Under the deal, Internet Brands stockholders will receive $13.35 in cash for each outstanding share of common stock they own representing a premium of 46.5 per cent over Internet Brands closing price on 17 September 2010.