agreed to buy
, a Web retailer of shoes and apparel.
Terms weren't disclosed, but Boston-based Shoebuy has more than 400,000 products and was founded in 1999. It will become part of IAC's retailing sector, which includes HSN.com and Cornerstone Brands. Scott Savitz, Shoebuy's founder and chief executive, will continue to oversee the company's operations. The deal is expected to close soon.
Shoebuy uses a virtual inventory model that allows vendors to showcase their product assortments. The company also recently expanded into new products through its site Bagsbuy.com.
Barry Diller, who is IAC's CEO, has built the company through acquisitions, adding such well-known Internet brands as Ask Jeeves, TicketMaster and Match.com.
IAC is due to report fourth-quarter earnings on Feb. 8. Analysts are forecasting earnings per share of 46 cents on sales of $1.77 billion, according to analysts surveyed by Thomson Financial.
On Tuesday, IAC shares dropped 13 cents to $28.97.