Internet Brands agrees to be acquired by Hellman & Friedman Capital Partners VI, L.P

Internet Brands, Inc. (NASDAQ: INET | PowerRating), a leading Internet media company, today announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Hellman & Friedman Capital Partners VI, L.P. in a transaction valued at approximately $640 million. Under the terms of the agreement, Internet Brands stockholders will receive $13.35 in cash for each outstanding share of common stock they own. This price represents a premium of approximately 46.5% over the closing price on September 17, 2010.

Internet Brands, Inc. (NASDAQ: INET | PowerRating), a leading Internet media company, today announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Hellman & Friedman Capital Partners VI, L.P. in a transaction valued at approximately $640 million. Under the terms of the agreement, Internet Brands stockholders will receive $13.35 in cash for each outstanding share of common stock they own. This price represents a premium of approximately 46.5% over the closing price on September 17, 2010.

The Board of Directors, on the unanimous recommendation of a Special Committee of independent directors, approved the merger agreement and recommends that Internet Brands’ stockholders adopt the merger agreement.

Internet Brands began in 1998 as CarsDirect.com, a product of the famed Internet incubator Idealab who still owns 19% of the shares. Internet Brands operates more than 100 websites, including ModelMayhem.com, DavesGarden.com, and Flyertalk.com. The previous owners of all three sites have outstanding legal disputes with Internet Brands.

The acquisition is subject to approval. Internet Brands shares jumped $4.06, or 44.6%, to $13.17 after announcement of the acquisition.