IAC/InterActive's digital media unit, Dotdash will acquire Meredith Corp. in an all-cash transaction valued at $2.7 billion. The combined entity will be named Dotdash Meredith and will be led by Dotdash CEO Neil Vogel, according to the two companies’ statement.
Under the terms of the deal, Dotdash will pay $42.18 a share for Meredith.
Meredith is a publisher of magazines such as People, Better Homes & Gardens and Southern Living. Dotdash currently has about 100 million online monthly consumers and owns 14 media brands in health, finance and lifestyle.
The Meredith acquisition will be funded by IAC using cash on hand and newly incurred debt.
The acquisition is subject to some regulatory approvals.
“The transaction has been unanimously approved by the boards of directors of both IAC and Meredith Corporation and is not conditioned on an IAC or Meredith Corporation shareholder vote,” the companies said in the statement.