Ancestry.com filed to go public back in August 2009. Now they are in the process of closing in on a sale to go private. Qatalyst Partners has been hired to run the process.
They are in talks with TPG Capital, Providence Equity Partners, and Permira according to sources with The New York Times. Final bids are not due until early August, but the price is believed to be at around $35-$39 per share.
This would give Ancestry.com a value of around $1.5 billion or more, which is triple their market value in 2009. Ancestry.com is expected to report earnings on Wednesday, which will be factored in the final price of the company.
Ancestry.com started in 1996 and it helps users find out more about their pedigree. Last year Ancestry.com generated $400 million in revenue and $62.9 million in net income. They have over 2 million subscribers they pay between $12.95 and $34.95 per month.
However analysts believe that since the TV show “Who Do You Think You Are?” was cancelled, Ancestry.com may need to spend more to gain subscribers.
That TV show heavily featured research from Ancestry.com. In the last quarter, Ancestry.com’s average cost of acquiring new customers was $88.11.