Online family history resource Ancestry.com (ACOM) on Monday said it has agreed to be bought by a company owned by the Permira funds and co-investors for $32.00 per share in cash, totaling $1.6 billion. The stock is climbing around 8 percent in pre-market trading.
Ancestry.com is the world's largest online family history resource. Through its network of websites, users can make discoveries and share their family history. Permira is a European private equity firm.
The transaction represents a premium of 41 percent over Ancestry.com's closing stock price on June 5, the last trading day before press reports appeared that the firm retained a financial advisor in connection with a possible sale. The deal is expected to close in early 2013.
Tim Sullivan, Ancestry.com's President and Chief Executive Officer, and Howard Hochhauser, Ancestry.com's Chief Financial Officer and Chief Operating Officer, will maintain a majority of their equity stakes in the company. Spectrum Equity will also continue to be an investor in the company.
The disinterested members of Ancestry.com's Board of Directors have unanimously approved the transaction and recommended that stockholders approve the merger.
Affiliates of Spectrum Equity, which together own around 30 percent of the company's outstanding shares, have agreed to vote their shares in favor of the merger.
Ancestry.com will remain headquartered in Provo, Utah, with continued presence in San Francisco, Dublin and London.
In the past 15 years, Ancestry.com has assembled over 10 billion digitized, indexed records. It has built a feature-rich, engaging product experience for its 2 million-plus subscribers.
Ancestry.com and Permira indicated that the company would continue to acquire content and invest in technology, with the support of the Permira funds and the investor group.
No changes are expected in Ancestry.com's operating structure, as a result of the acquisition. Ancestry.com's focus will continue on investing in content, technology and its user experience, expanding product offerings in areas such as DNA.
In July, the company reported second-quarter profit that topped estimates. The company also raised its full year 2012 revenue outlook. In August, the company completed the acquisition of family history website Archives.com for about $100 million in cash and assumed liabilities.
The stock, which closed at $29.18 on Friday, is gaining close to 8 percent in pre-market trading.
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