IAC completes spin-off of home services platform Angi

Published 01/04/2025, 13:38
IAC completes spin-off of home services platform Angi

NEW YORK and DENVER - IAC (NASDAQ: IAC) has finalized the spin-off of its entire ownership stake in Angi (NASDAQ: ANGI), a prominent home services platform with a market capitalization of $776 million, effectively making Angi an independent, publicly traded entity. According to InvestingPro data, Angi maintains a healthy liquidity position with a current ratio of 2.14, indicating strong ability to meet short-term obligations. This strategic move was completed on March 31, 2025, with IAC shareholders now directly owning the former IAC interest in Angi.

Concurrent with the spin-off, Joey Levin transitioned from his role as CEO of IAC to become the Executive Chairman of Angi. Levin will continue to advise IAC while working closely with Angi CEO Jeff Kip and the senior management team to achieve the company’s strategic goals.

Barry Diller, Chairman and Senior Executive of IAC, expressed confidence in both companies’ potential for growth and innovation, stating that Angi is poised to pursue its own ambitions while IAC focuses on exploring new opportunities.

As part of the transition, Angi has shed its dual class voting structure, with IAC converting all high vote shares to low vote shares before distributing them to shareholders. Angi anticipates that its newfound independence will provide a more compelling equity currency to foster growth through mergers and acquisitions, capital formation, and talent acquisition. The company is also concentrating on its strategic priorities with a goal of returning to revenue growth in 2026, following a 12.78% revenue decline in the last twelve months. InvestingPro analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors looking at the company’s independent future.

Angi’s CEO, Jeff Kip, praised the company’s progress in enhancing customer experience and financial performance and emphasized Angi’s commitment to its mission of delivering quality service.

Both IAC and Angi have reaffirmed their full-year guidance for 2025, signaling a positive outlook for the future.

The distribution of Angi shares to IAC stockholders was based on a pro rata basis, with approximately 0.5251 shares of Angi Class A common stock allocated for each share of IAC stock held as of the record date, March 25, 2025.

This corporate restructuring marks Angi as the 10th independent company to emerge from IAC’s history of creating value, while IAC continues to concentrate on the growth of its existing businesses and investments, including Dotdash Meredith and its stake in MGM. With the stock trading near its 52-week low of $14.90 and maintaining a moderate debt-to-equity ratio of 0.51, investors can access detailed analysis and 10+ additional key insights through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

The information in this article is based on a press release statement.

In other recent news, Angi Inc. has enacted a 1-for-10 reverse stock split of its Class A and Class B common stock, effective immediately. This strategic decision was approved by the board of directors and necessary stockholders, aiming to consolidate share value. Additionally, Angi issued over 1.2 million shares of its Class A common stock to its parent company, IAC Inc., in a private transaction valued at approximately $2 million. This issuance was part of a reimbursement agreement related to equity awards facilitated by IAC for Angi employees. Furthermore, Angi announced a significant executive transition, with the departure of Chief Technology Officer Kulesh Shanmugasundaram and the appointment of Kris Boon as the new Chief Product Officer. Boon will assume his new role at the end of March, bringing experience from his previous position as Chief Product and Technology Officer for Angi’s international business. In another development, Angi is preparing for a spin-off from IAC, with IAC planning to distribute all its Angi capital stock to its stockholders by the end of March. This spin-off will result in IAC not retaining any Angi capital stock, with Angi’s Class A common stock continuing to trade on the Nasdaq. These moves reflect Angi’s ongoing corporate strategies and structural changes.

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