Answers Corporation (Nasdaq:ANSW) (formerly Gurunet), Answers.com, (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 Answers.com. It operates from Jerusalem and New York, and employs about 73 people.
AFCV will acquire all outstanding shares of Answers.com 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 - www.globes-online.com - on February 3, 2011
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