Online media company Internet Brands goes for $640 million

You may have heard of online media company Internet Brands who are currently involved with several websites involving media, e- commerce and community such as WikiTravel, Autos.com and DoItYourself to name but a few.

Well it appears that Internet Brands are now being acquired by private equity firm Hellman & Friedman who have entered into a deal to purchase the company for $640 million cash, working out at a share value of $13.35 per share, according to Stan Schroeder over on Mashable. Shareholders will be pleased to know that based on the closing price of shares on September 17, that’s a 46.5% premium.

A voting agreement has been entered into by Idealab, Internet Brands main shareholder, for the merger. The deal is expected to close in the fourth quarter of 2010 but still has to pass approval from shareholders. Hellman & Friedman are known for investing through private equity funds and previous investments have been in Getty Images and Nasdaq among others.

For more on this go to mashable.com. If you have any thoughts about the acquisition please leave your comments in the box below. You may also be interested in our earlier article about Apple acquiring Polar Rose, a face recognition company.