InfoSpace to Sell Assets to Idearc for $225 Million
Idearc said Monday it is purchasing Switchboard.com and other online directory assets from InfoSpace for $225 million in cash.
The transaction will be financed through a mix of cash and borrowings under Idearc's existing credit facility and is expected to add to cash flow in the first year.
The Verizon Yellow Pages publisher said the acquisition will boost its online directory platform, Superpages.com, and give advertisers more online presence.
The transaction is expected to close by the end of the year, subject to regulatory approval and customary closing conditions.
InfoSpace, whose board unanimously approved the deal, is the operator of dogpile.com and other search sites. The company said it plans to give proceeds of the sale to stockholders through a special cash distribution. It will use some of its loss carryforwards to offset the taxable gain from the sale in order to give shareholders more cash.
Shares of InfoSpace jumped more than 20% on the news.