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Answers.com Sells For $127 Million

Summit Partners brushes off Quora threat

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Over the next few days, onlookers shouldn’t be surprised if the mix of questions on Answers.com begins to favor inquiries of the "what kind of ____ should I buy?" variety.  Fans may have some extra money coming to them, as Answers.com announced this morning that it’s being acquired for $127 million.

AFCV Holdings, which is controlled by Summit Partners, is the organization that’s making the purchase.  And Summit Partners, if you’re interested, is a "growth equity investor" that’s backed Avast, B&W Loudspeakers, Belkin, Champion Windows, InstallShield, M-Audio, McAfee, Postini, and Tivoli Audio in the past.

Summit Partners appears to have a lot of faith in Answers.com, too.  Bob Rosenschein, the founder, chairman, and CEO of Answers.com, explained in a statement, "The acquisition price of $10.50 per share represents a significant cash premium of approximately 33% over our 90-day volume-weighted average closing stock price."

Rosenschein said as a result, "This is a great outcome for our shareholders.  After an exciting six years as a public company, we are very pleased to achieve considerable value for our investors."

One other interesting point about all this: the move occurred despite all the recent talk about Quora.  So presumably Summit Partners doesn’t see the Q&A startup (or Facebook Questions, for that matter) as too much of a threat.

The acquisition should close sometime in the second quarter of this year.

Answers.com Sells For $127 Million
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