NBC Universal reached an agreement to acquireiVillage Inc. (www.ivillage.com) in a transaction valued at approximately $600 million.
The media giant said it will purchase 100% of the equity in the online destination for women for $8.50 in cash per common share.
NBC U added that the transaction is expected to close during the second quarter, pending shareholder and regulatory approvals.
Upon completion of the transaction, the iVillage team will report directly to Beth Comstock, president of NBC U digital-media and market development, and they will continue to be based in New York.
NBC U said it expects to grow digital revenues to approximately $200 million in 2006, and the company projected a 20% growth rate going forward following its acquisition of iVillage.
“This acquisition allows us to marry our on-air branded content with compelling new interactive functionality," NBC U television group CEO Jeff Zucker said in a prepared statement.
“From Today to Project Runway to The Biggest Loser to all of the health and medical and lifestyles segments we do every day on every one of our owned-and-operated television stations, we will now be able to create a deeper, richer experience around our content for consumers across all emerging platforms,” he added.