KKR To Acquire Internet Brands - Update

(RTTNews) - Kohlberg Kravis Roberts & Co (KKR) Tuesday agreed to acquire Internet Brands, a vertically-focused online media and software services provider, from private equity Hellman & Friedman LLC and JMI Equity.

KKR did not disclose the financial terms of the deal, but The New York Times reported the deal is worth $1.1 billion. Hellman & Friedman and JMI Equity bought Internet Brands in 2010 for about $640 million.

El Segundo, California-based Internet Brands operates branded websites and vertical software solutions in four primary markets: auto, health, legal, and home and travel. The company derives most of its revenues from online advertising. It operates websites including CarsDirect, eHealth, and Apartment Ratings.

According to KKR, Internet Brands' properties attract more than 100 million unique visitors per month and serve more than 100,000 SMBs and advertisers. Internet Brands has about 1,600 employees.

"Internet Brands is at an exciting inflection point of growth as the company transitions from a portfolio of web assets to a vertically integrated provider of media and client software solutions," said Herald Chen, co-head of KKR's technology investing team.

KKR has in the past invested in businesses related to technology, including recent investments in Go Daddy, Mitchell, Aceco TI, Visma, Fotolia, and Ipreo.

KKR said its investment is in partnership with Internet Brands CEO Bob Brisco and the Internet Brands management team, who will hold a minority stake in the company and continue to run the business. KKR is making the investment through its North America XI private-equity fund.

KKR stock is trading at $22.78, down $0.12 or 0.52%, on a volume of 465k shares on the NYSE.