Online media company Internet Brands (NADAQ:INET) hit a 52-week high Monday after it said an affiliate of equity investor Hellman & Friedman Capital Partners will buy it for $640 million.
Shares of Internet Brands were up more than 45% on the news, more than $4, to $13.40 a share.
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Under the deal, Internet Brands stockholders will receive $13.35 in cash for each outstanding share of common stock. The price reflects a premium of 46.5% over Internet’s closing price on Friday.
Internet’s board of directors approved the merger and recommended shareholders adopt the agreement.
“We are very happy for our stockholders. This is a great outcome,” said Internet Brands CEO Bob Brisco. “We are looking forward to the next leg of building a powerful new media company with our new owners.”
The transaction, subject to stockholder approval and other customary conditions, is expected to close in the fourth quarter of this year.