InfoSpace Inc said it would purchase privately held TaxACT for $287.5 million in cash as it looks to branch out from its core Internet search business and tap into the growing online tax preparation market.News of the deal drove InfoSpace shares up as much as 8 percent to $11.95 on Monday on the Nasdaq before they pared most of their gains to trade up 2 percent.The deal comes roughly two months after tax-preparation services company H&R Block Inc dropped its plan to buy 2nd Story Software Holdings, the operating company for TaxACT after hitting an antitrust snag.InfoSpace, valued at about $435 million, was looking to buy strong brands, with long-term growth prospects, to diversify from its core search business and the buy will give it a presence in the $20 billion tax preparation market.
H&R Block, Inc. (H&R Block) is a tax service provider. Shares of HRB traded higher by 0.12% or $0.02/share to $16.28. In the past year, the shares have traded as low as $12.39 and as high as $18.00. On average, 3014700 shares of HRB exchange hands on a given day and today's volume is recorded at 1061165.
InfoSpace, Inc. (InfoSpace) offers applications and services, which delivers benefits for the online consumer, which includes the discovery of information, entertainment, and products for sale. Shares of INSP fell by 1.0% or $-0.11/share to $10.92. In the past year, the shares have traded as low as $7.83 and as high as $11.95. On average, 257663 shares of INSP exchange hands on a given day and today's volume is recorded at 386069.
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