Permira Acquires Ancestry.com For $1.6 Billion

Permira has acquired Ancestry.com for $1.6 billion ($32 per share).  The $1.6 billion deal of the deal accounts for the vesting of outstanding options.  The $32-per-share price is a premium of about 40% from where the stock was trading at in June before reports hit that Ancestry.com is being shopped around.

Ancestry.com LogoPermira beat several other companies in a bidding war.  The shares hit a 52-week high of $33.47 on July 31st and traded at above $32 for the 2.5 weeks after.  On Friday, the share price closed down 1.7% at $29.18.

Ancestry.com did not have any debt at the end of the second quarter, but will carry just under $1 billion as part of the take-private deal.  Ancestry.com was founded in 1983 and is based in Provo, Utah.

Ancestry.com launched online 15 years ago and digitized billions of historical records including Australian election rolls and U.S. military records.

Ancestry.com has over 2 million subscribers and pays $12.95 to $34.95 per month to access its content and use online search tools according to Ancestry.com.

Other buyers in the group of investors include members of Ancestry.com’s management like CEO Tim Sullivan, CFO Howard Hochhauser, and Spectrum Equity.  Spectrum Equity owns 30% of Ancestry.com.

Spectrum Equity invested in Ancestry.com back in 2007 and became a majority owner.  Spectrum helped take the company public at $13.50 per share in November 2009.

[WSJ]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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