Shares of Angie's List (NASDAQ: ANGI) skyrocketed 43 percent in extended trading after The Wall Street Journal reported Monday that the customer-review site is looking to combine with internet company IAC's HomeAdvisor to create a new publicly traded company.
IAC and Angie's List later confirmed they reached a deal. The new company will be called ANGI Homeservices Inc., the companies said in a press release.
The deal values Angie's List at more than $500 million, according to WSJ. Angie's List shareholders have the option to get one Class A common share of the newly formed company or $8.50 in cash for each share they own. The cash payout would be capped at $130 million, with the deal expected to be completed in the fourth quarter.
HomeAdvisor CEO, Chris Terrill will become CEO of ANGI Homeservices, and IAC CEO Joey Levin will step in as chairman. The current chairman of Angie's List, Thomas R. Evans, will join the new company's board alongside Angie's List co-founder Angie Hicks.
Shares of IAC/InterActiveCorp (NASDAQ: IAC) popped over 6 percent percent in after-hours trading.
Watch: Angie's List CEO on what the company has to offer
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