Answers.com, creator of the answer engine Answers.com, has entered into a definitive merger agreement to be acquired by AFCV Holdings, a portfolio company of equity investor Summit Partners, for a total cash consideration of approximately $127m.
AFCV will acquire all outstanding shares of Answers.com common stock, Series A convertible preferred stock and Series B convertible preferred stock.
Under the agreement, Answers.com common stock shareholders will receive $10.50 in cash for each outstanding share of common stock they own.
The holders of Series A and Series B convertible preferred stock will also be entitled to receive cash consideration based on the number of the common stock into which those shares are convertible at the time of the merger.
Answer.com founder, chairman and CEO Bob Rosenschein said after an exciting six years as a public company, they are pleased to achieve considerable value for their investors.
"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," Rosenschein said.
