Delaware
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91-1718107
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(State or other jurisdiction of
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(IRS Employer
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incorporation)
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Identification No.)
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InfoSpace purchased the TaxACT business for consideration of $287.5 million in cash, less certain transaction expenses, and subject to certain specified working capital adjustments. The Acquisition was funded from InfoSpace's cash reserves, from the proceeds of the sale of certain short term investments held by InfoSpace, and from the net proceeds of a $105 million credit facility (of which $100 million was drawn). 2nd Story is the primary debtor for this credit facility and the repayment obligations will be paid out of cash generated by the TaxACT business. Specific details of this credit facility, which closed concurrently with the closing of the Merger Agreement, and the terms of the related credit agreement, will be contained in a subsequent Current Report on Form 8-K. Prior to the Acquisition, there was no material relationship between InfoSpace (or any InfoSpace affiliated person or party) and 2nd Story Software, Inc., 2SS Holdings, Inc. (the predecessor entity to TaxACT Holdings, Inc.), or any of the shareholders of 2SS Holdings, Inc.
The foregoing description of the Acquisition and the Merger Agreement is a summary, does not purport to be a complete description, and is qualified in its entirety by reference to the Merger Agreement, a copy of which was filed as Exhibit 2.1 to the January 9, 2012 Current Report on Form 8-K.
To be filed by amendment no later than 71 calendar days after the date this Current Report on Form 8-K is required to be filed.
(b) Pro Forma Financial Information
To be filed by amendment no later than 71 calendar days after the date this Current Report on Form 8-K is required to be filed.
(d) Exhibits
99.1 Press release issued on January 31, 2012.
INFOSPACE, INC.
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Date: January 31, 2012
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By:
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/s/ Linda Schoemaker
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Linda Schoemaker
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General Counsel and Secretary
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Exhibit No.
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Description
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EX-99.1
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Press release issued on January 31, 2012.
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Exhibit 99.1
INFOSPACE COMPLETES ACQUISITION OF TAXACT
BELLEVUE, Wash., January 31, 2012 - InfoSpace, Inc. (NASDAQ: INSP), today announced that it has completed its previously announced acquisition of TaxACT, a leading provider of online tax solutions, in a transaction valued at $287.5 million.
TaxACT offers the only complete free federal tax solution for "everyone." Its offerings include a free edition, deluxe edition and state edition, for individual tax filers, and products for both business and professional filers. TaxACT's offerings are available through a secure online delivery system, complemented by available desktop downloads and extensive tax and IRS expertise.
"We are extremely pleased to complete the acquisition of TaxACT, a leader in online tax preparation," said William J. Ruckelshaus, President and Chief Executive Officer of InfoSpace. "I am excited to welcome TaxACT employees to the InfoSpace team, and look forward to working together to capitalize on opportunities for growth."
InfoSpace funded the transaction with a combination of cash on hand and approximately $100 million of debt. The transaction is expected to be immediately accretive to InfoSpace earnings per share, and leaves the Company with over $100million of cash on hand.
TaxACT Holdings, Inc. is now a wholly-owned subsidiary of InfoSpace. TaxACT will continue operations in Cedar Rapids, Iowa as a standalone business unit led by the TaxACT management team.
About InfoSpace, Inc.
InfoSpace operates two independent business units. Our search business is focused on bringing the best of the Web to Internet users by providing online search products via third party distribution partners as well as our own branded web properties. Our online tax software business operates under the brand name TaxACT (www.taxact.com) and is a leading provider of online tax solutions, reliably serving millions of consumers for over a decade. Additional corporate information may be found at www.infospaceinc.com and iSpaceBlog.com. You may also follow and connect with InfoSpace and TaxACT on LinkedIn, Google Plus, Facebook, Twitter and YouTube.
InfoSpace.com, InfoSpace, Dogpile, MetaCrawler, WebCrawler, WebFetch, and other marks are trademarks of InfoSpace, Inc. and TaxACT
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Investor Contact:
Stacy Ybarra, InfoSpace
(425) 709-8127
stacy.ybarra@infospace.com
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and which may differ significantly from actual results due to various risks and uncertainties including, but not limited to: general economic, industry, and market sector conditions; the timing and extent of market acceptance of developed products and services and related costs; the successful execution of the Company's strategic initiatives, business integration plans, operating plans, and marketing strategies. A more detailed description of these and certain other factors that could affect actual results is included in InfoSpace, Inc.'s most recent Annual Report on Form 10-K and subsequent reports filed with or furnished to the Securities and Exchange Commission. InfoSpace, Inc. undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date of this release or to reflect the occurrence of unanticipated events.