The total cash consideration is roughly $127 million, and the common stock purchase price comes to $10.50 per share. AFCV will acquire all outstanding shares of Series A convertible preferred stock and Series B convertible preferred stock as well. 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.
The $10.50 premium buyout comes to about 18% from yesterday’s $8.90 close and the 30-day average premium is roughly 33%. The 52-week trading range is $4.50 to $9.75. To go back to higher share prices, you have to go back to early-2007. Shares briefly went above $20.00 in early-2005 after a massive run-up from around $5.00 in late-2004. Answers.com had a market cap of roughly $71 million as of yesterday’s close.
The board of directors of Answers.com has unanimously approved the merger and recommends that stockholders vote to approve the merger agreement. The transaction does have fully committed financing and is expected to close in the second quarter of 2011, subject to the satisfaction of customary closing conditions.
JON C. OGG
Contact [email protected] for any questions or corrections.
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