Canaccord Genuity Maintains a 'Buy' on IAC/InterActiveCorp (IACI); Acquiring About.com

Canaccord Genuity maintains a 'Buy' on IAC/InterActiveCorp (NASDAQ: IACI) price target of $62.00.

Analyst, Michael Graham, said, "IAC has agreed to buy About.com from NY Times (NYSE: NYT) for $300 million in cash, with the deal expected to close in the early October time frame...We believe About is ~$100M in revenues (and has been shrinking ~8% y/y) with ~40% EBITDA margins (down from ~46% a year ago). This puts the valuation at ~7.5x an estimated $40M 2013 EBITDA, similar to IAC’s current multiple...As a baseline, we expect this ~$40M gain in EBITDA to be offset by the loss of ~$1.5M in interest income. As part of IAC, we expect About to grow faster with lower margins."

For an analyst ratings summary and ratings history on IAC/InterActiveCorp click here. For more ratings news on IAC/InterActiveCorp click here.

Shares of IAC/InterActiveCorp closed at $51.92 yesterday.

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