Angie’s List stock surged in after-hours trading Wednesday afterthe company rejected  IAC/InterActiveCorp’s offer to purchase all its outstanding shares.

The all-cash offer by Barry Diller’s IAC/InterActiveCorp would purchase Angie’s List  (ANGI) stock for $8.75 a share, a premium to Angie List’s Wednesday closing price of $7.92. It proposes a merger of Indianapolis-based Angie’s List with IAC’s HomeAdvisor unit through a tax-free stock-for-stock exchange.

IAC (IACI), however, acknowledges that Angie’s List isn’t interested in the offer. Angie’s List, a web-based provider of crowd-sourced small business reviews, did not immediately respond to a request for comment.

Angie’s List shares closed Wednesday up 1%. Shares jumped 12% in after-hours trading. Shares of IAC/InterActive, whose MatchGroup unit is preparing to go public, was flat after hours.

According to a letter submitted to Angie’s List’s board of directors, IAC proposes “to acquire 100 percent of the outstanding capital stock of Angie’s List … representing a compelling premium of greater than 50 percent over the unaffected price of Angie’s List common stock as of Oct. 12, 2015.”

“We were disappointed to hear that the (Angie’s List) Board is not interested in further engaging with us regarding a strategic transaction involving Angie’s List,” the letter stated. “We continue to believe a transaction involving our companies has a compelling strategic rationale, and we are confident we are well-positioned to swiftly consummate a transaction that will be in the best interests of Angie’s List stockholders.”Angie’s List is on track to turn an annual profit for the first time since it was founded in 1995. It recently finished its third quarter in the black with a revenue of $87 million.

Until now, the company has been dependent on capital infusions from investors.

Last month, Angie’s List announced two measures to guarantee its customers a fair price and quality of service. The business promised that if a service isn’t satisfactory, they either will make it good or reimburse them up to $100,000. It also pledged to pay customers the difference on goods purchased within 30 days if they find a better deal.

The move is designed to help Angie’s List compete with companies like Amazon.

Call Star reporter Kris Turner at (317) 444-6047. Follow him on Twitter: @krisnturner.

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