sold for $127m cash

The buyer is a unit of private equity firm Summit Partners.

Answers Corporation (Nasdaq:ANSW) (formerly Gurunet),, (NASDAQ:ANSW - News) has agreed to be acquired by AFCV Holdings, LLC, a unit of private equity firm Summit Partners, for $127 million cash. The price per share is $10.5, compared with a closing price yesterday of $8.9, which gave the company a market cap of $71.15 million.

Answers Corporation runs web answers search engine It operates from Jerusalem and New York, and employs about 73 people.

AFCV will acquire all outstanding shares of common stock, Series A convertible preferred stock and Series B convertible preferred stock.

Answers founder, chairman, and CEO Bob Rosenschein said, "This is a great outcome for our shareholders. The acquisition price of $10.50 per share represents a significant cash premium of approximately 33% over our 90-day volume-weighted average closing stock price."

The Answers Corporation board has unanimously approved the transaction, and recommends stockholders to accept it.

Published by Globes [online], Israel business news - - on February 3, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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