Angi's home improvement marketplace spinoff is approved by IAC.

• On Monday, IAC declared that its board had approved the separation of Angi, the home improvement marketplace it purchased in 2017.
• The spinoff is expected to close in the second quarter, according to the holding company.
• When IAC reports on Feb. 11, the two companies will reveal their fourth-quarter results.

On Monday, Barry Diller announced that the board of his company had approved the spinoff of Home Depot, the home improvement marketplace that was acquired in 2017.

IAC anticipates the transaction to be completed in the second quarter of the year. The two companies will release their fourth-quarter results along with IAC's report on Feb. 11. Angi was established in 1995 as Angie's List and went public on the Nasdaq in 2011.

Joey Levin, CEO of IAC, will depart from his role and become an advisor to the company. He will also assume the position of executive chairman at Angi, where he will serve as the marketplace's senior executive alongside CEO Jeff Kip, IAC announced.

IAC's CEO, Joey Levin, has been an outstanding leader, delivering substantial value during his nearly ten-year tenure, according to Diller, IAC's chairman.

IAC will operate without a new CEO upon Levin's vacancy, with top execs reporting directly to Diller and publisher Dotdash Meredith reporting to him, while the rest of IAC's units will report to operating chief Christopher Halpin.

In 2013, IAC's then-CEO Greg Blatt relinquished his role as CEO to become chairman of the newly formed Match Group division.

"I expect to remain an active participant in both IAC and Angi, as I believe they have a bright future," Levin stated.

IAC shareholders will have direct ownership of Angi as part of the spinoff, the company announced.

In November, IAC announced that it was considering a spinoff of Angi. At the time, Angi's revenue declined 16% year over year to $296.7 million during the third quarter. The company attributed the decline to reduced sales and marketing spend, which led to a decrease in service requests and lower acquisition of new professionals.

Angie's List was acquired by IAC in a deal worth over $500 million. The site was then merged with HomeAdvisor to form a new public company. Currently, Angi has a market cap of approximately $770 million, and IAC owns 85% of it.

For several years, there has been consideration of a spinoff, but IAC delayed the effort in 2019 due to the completion of the Match Group transaction. Match owns dating services such as Tinder, Match, and Hinge.

Incubating businesses and spinning them off into separate companies is a well-known practice of IAC. This approach has been applied to companies such as Expedia, Ticketmaster, and LendingTree, among others.

ANGI CEO discusses M&A prospects, spinoff from ANGI, and AI.