America Online, Inc to acquire MapQuest.com, Inc. for 35.63 times revenue

Weekly Corporate Growth Report, Jan 10, 2000

The Deal: America Online, Inc. has agreed to purchase MapQuest.com, Inc., an online mapping company, in an all stock deal valued at $880.0 million. According to the terms of the transaction, MapQuest shareholders will receive 0.31558 share of AOL common stock for each share of MapQuest stock. The offer represents nearly $26.80 a MapQuest share based.on America Online's closing price of $83.00 on January 3, 2000. The deal would provide AOL's twenty million subscribers with Web-based maps, directions and traffic updates, as well as increasing AOL's capacity to direct local advertising and electronic commerce promotions to its users.

Discussion: MapQuest.com, Inc., formerly GeoSystems Global Corporation, supplies maps and proximity information for businesses, and travel guides and directions to consumers. Other products include digital maps for textbooks and travel guides, as well as computer applications for information kiosks and hotel reservation systems. Clients include AAA, Yahoo! and the National Geographic Society.

With more than 20 million subscribers, America Online is the world's No. I provider of online services. AOL's 1999 acquisition of Netscape Communications brought the Netscape Netcenter portal and Netscape Communicator software, including th Netscape Navigator browser, under the AOL umbrella and advanced its joint venture with Sun Microsystems to develop e-commerce software. AOL bolsters its Web presence through its AOL Instant Messenger, AOL.com portal, Digital City and AOL MovieFone.