Meredith Corp., producer of magazine titles such as Better Homes and Gardens and People, will be acquired by InterActiveCorp. Dotdash for $2.7 billion, in a deal that is expected to close by the end of the year.

The deal involves the entity that holds Meredith’s National Media Group, which comprises its digital and magazine businesses, more than 40 titles and digital brands, and its corporate operations, in an all-cash transaction at a price of $42.18 per share.

The acquisition was announced late Wednesday in a joint release, which said the combined company would create a digital powerhouse that would reach 195 million online consumers monthly and 95% of women to become one of the largest publishers in the country. The new company will be named Dotdash Meredith, and it will be led by Dotdash Chief Executive Neil Vogel.

Who is IAC Dotdash?
Acquiring online companies and later spinning them off has long been part of New York-based IAC’s playbook, Fox Business reported. IAC originated as a hybrid media/electronic-retailing business that included the Home Shopping Network. The company became a voracious buyer of internet companies, many of which were eventually spun off and are now publicly traded. Beyond Match and Vimeo, the businesses once owned by IAC include Expedia Group Inc., Ticketmaster and LendingTree Inc.

Digital publisher Dotdash, which would house the Meredith properties, currently reaches about 100 million online consumers monthly through 14 media brands in health, finance and lifestyle, among them Verywell, Serious Eats, Investopedia, Brides and Tripsavvy.

Where will Dotdash Meredith be based?
According to an IAC spokeswoman, the new company will be based in New York, at Dotdash’s headquarters in Manhattan. The company will “keep a presence” in Des Moines, the New York Times reported.

What does the acquisition mean for Des Moines?
It’s unclear today what it means, but in an investor call late Wednesday, Vogel said no “cost synergy” or layoffs or other cuts are planned as a result of the merger. How the merger will affect Meredith’s current leadership is unclear.

Matthew Mitchell, a Drake University professor and business strategist, said it would be smart for the new combined company to stay in Des Moines, KCCI reported.

“I think we can be very encouraged that our workers in this area know how to do this work, and we’re also pretty cost-effective,” Mitchell said. “We have a low cost of living and so they’ve really built up that talent in this area. And I wouldn’t expect [any] sort of a wholesale change too quickly.”

How is the deal structured?
The acquisition follows the previously announced sale of Meredith’s Local Media Group to Gray Television. That sale will pay shareholders $16.99 per share. The IAC acquisition of the remaining Meredith Corp. allows for the purchase price of $42.18 per share, Yahoo Finance reported.

The transaction is structured as an all-cash stock acquisition of the entity that will hold Meredith’s digital and magazine businesses and corporate operations. The acquisition is expected to be funded by IAC with a combination of cash on hand and newly incurred debt and is subject to customary closing conditions, including regulatory approvals and completion of the spin-off.

How are investors reacting to the announcement?
The transaction has been unanimously approved by the boards of both Meredith and IAC and is not conditioned on an IAC or Meredith shareholder vote, the companies said.

Meredith shares were trading at $58.20 this morning, up 6.7% from Wednesday’s closing price. IAC/Interactive Corp. stock was up by a similar percentage, trading at $140.66 at midmorning.