Ancestry.com announced today its entrance into an agreement to be acquired by a company owned by Permira and co-investors for $32 per share, a transaction valued at $1.6 billion. As a part of the agreement, Tim Sullivan, President and CEO of Ancestry.com, and Howard Hochhauser, Ancestry.com CFO and COO, will maintain a majority of their equity stakes.
"This is a successful outcome for our public stockholders, and a great day for Ancestry.com employees and subscribers around the world," said Tim Sullivan. "We're excited that Permira shares our commitment to keep investing in our technology and product experience to make family history easy and accessible for more and more families around the world. Their strong investment track record in the technology and Internet sectors makes them a terrific advisor and partner as we take the company forward."
Ancestry.com has made a name for itself as the world’s largest family history resource. Ancestry.com prides itself in compiling over the last 15 years a collection of over 10 billion digitized, indexed records for its 2 million subscribers, who, through use of the website’s services, can research their family tree as well as share family history.
The cost of the transaction represents 41 percent of Ancestry.com stock and its value determined by the closing stock price on June 5th, 2012. Spectrum Equity, a 30 percent stakeholder in Ancestry.com, has agreed to vote in favor of the merger.
“With its pioneering technology and market leading position, Ancestry.com is an exciting investment opportunity for the Permira funds. We are thrilled to be able to back the company as it continues to develop new and innovative content, and expand in both its core markets and into new geographies. We look forward to bringing Permira's technology and media experience to bear in supporting Tim, Howard and the rest of the talented team at Ancestry.com and its mission of helping everyone discover, preserve and share their family history," said Brian Ruder, Partner and Head of Permira's Menlo Park office.
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Under Permira’s direction, Ancestry.com will continue executing its growth strategy. The website will continue to focus on investing in content, technology and user experience.
The transaction is still subject to shareholder approval but is expected to close in early 2013.