*A correction was made to this story.
New York – Answers.com announced on Thursday that it has
agreed to be acquired by AFCV Holdings, a unit of Summit Partners, in a deal
valued at $127 million.
The purchase price of $10.50 per share represents a 33%
premium over the company’s average closing price over the past 90 days.
New
York-based Answers Corp., previously called GuruNet, was founded in 1998.
The
company acquired WikiAnswers (previously FAQ Farm) in 2006.
Answers.com has raised a total of over $45 million in financing to
date, from backers including Redpoint Ventures, Flatiron Partners, Goldman
Sachs and Highland Capital Partners.
*Correction: This story previously stated that Answers.com acquired Dictionary.com, when in fact the company sold to IAC.
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