Kohlberg Kravis Roberts & Co.
) rose nearly 2% following its announcement of the deal to acquire
Internet Brands from Hellman & Friedman and JMI Equity on
Tuesday. Headquartered in El Segundo, CA, Internet Brands offers
vertically-focused online media and software services.
The investment will be carried out through Kohlberg Kravis' North
America XI private equity fund. The transaction is subject to
customary closing conditions.
Though no financial details were disclosed, as per a New York Times
report the deal is worth $1.1 billion. Notably, Hellman &
Friedman and JMI Equity had acquired it for $640 million in 2010.
Following the completion of the deal, Internet Brands' chief
executive officer Bob Brisco and its management team will hold a
minority stake in the company. Moreover, Bob Brisco will continue
to head the company, which employs nearly 1,600 people. The major
part of the company revenues comes from online advertising.
Founded in 1998, Internet Brands focuses on auto, health, legal and
home / travel sectors and operates sites such as DoItYourself.com,
Lawyers.com and ApartmentRatings.com, among others. Further, it
provides automobile-related software and services to
Toyota Motor Corporation
Ford Motor Co.
) and Chrysler Group LLC.
For Kohlberg Kravis, the deal seems a right move. The company has a
previous track record of successfully investing in technology
businesses like Go Daddy, Mitchell, Aceco TI, Visma, Fotolia and
Kohlberg Kravis is always on the lookout for lucrative deals with
growth potential. Some of the company's recent acquisitions define
its expansion strategy as well as portfolio diversification plans.
Last week, the company had announced its acquisition of
Singapore-based Goodpack Ltd, the world's largest maker of
intermediate bulk containers, for S$1.4 billion ($1.11 billion).
Kohlberg Kravis currently carries a Zacks Rank #3 (Hold). A
better-ranked investment manager is
Cohen & Steers Inc.
), sporting a Zacks Rank #1 (Strong Buy).
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