IAC/InterActiveCorp agreed to separate Match Group Inc. from its remaining businesses, which will see Match Group and IAC becoming two independent public companies.
The transaction, expected to be tax free, will give IAC shareholders direct ownership of Match Group and is expected to allow IAC to pursue new opportunities and its management to focus on the company's undervalued assets. The companies will provide details of the transaction in a filing with the SEC.
The boards of IAC and Match Group approved the separation agreement. In addition, a special committee made up of disinterested directors recommended the plan to Match Group's board.
The transaction is expected to close in the second quarter of 2020, subject to a number of conditions, including a majority approval by Match Group's disinterested shareholders and IAC's shareholders.