Internet Brands is a company that runs many web properties. Many of them are niche forum websites. Earlier this week a deal was announced where an affiliate of Hellman & Friendman Capital Partners VI would acquire $640 million.
As part of the agreement, Internet Brands stockholders will receive $13.35 in cash for each outstanding share of common stock. This is a premium of 46.5% of the company’s closing stock price this past Friday.
Internet Brands owns over 100 websites which include Autos.com, Loan.com, DoItYourself.com, ModelMayhem.com, etc. Each of these websites combined receive 62 million unique visitors per month. Internet Brands started as an incubator company called Idealab back in 1998.
The deal is subject to stockholder approval. And a law firm by the name of Levi & Korsinsky is investigating if the Board of Directors breached duties to stockholders by “failing to adequately shop the Company” before entering the acquisition transaction.