May 1, 2017 / 10:09 PM / 7 months ago

BRIEF-IAC's HomeAdvisor to combine with Angie's List

May 1 (Reuters) - Angie’s List Inc:

* co’s stockholders to have right to elect to receive either 1 share of class a common stock of ANGI Homeservices Inc or $8.50/share cash​

* IAC’s HomeAdvisor to combine with Angie’s List

* Angie’s List Inc says transaction has been approved by boards of directors of both companies

* combined company will have a target five-year compound annual growth rate of revenue of 20 to 25 percent

* upon completion of deal, IAC will own between about 87 percent & about 90 percent of equity value of combined company

* combined company will have a target adjusted ebitda margin that will ramp to approximately 35 percent

* Angie’s List Inc says HomeAdvisor CEO Chris Terrill will assume role of CEO of ANGI Homeservices Inc

* IAC CEO Joey Levin will also serve as chairman of board of directors of ANGI Homeservices Inc

* Angie’s List Inc says by end of 2018, management expects to fully implement $100 to $250 million of annualized synergies

* under terms of merger agreement, Angie’s List will merge with a subsidiary of ANGI Homeservices Inc

* Thomas Evans, current chairman of Angie’s List and Angie Hicks, Angie’s List co-founder expected to join board of ANGI Homeservices Inc

* IAC will designate a majority of initial members of board of directors of combined company

* under terms, total amount of cash available in transaction to be capped at $130 million

* IAC, co entered into deal to combine IAC’s HomeAdvisor and co into new publicly-traded company, to be called ANGI Homeservices Inc

* HomeAdvisor CEO Chris Terrill will assume role of CEO of ANGI Homeservices Inc Source text for Eikon: Further company coverage:

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