Ancestry.com To Be Sold For $1.6 Billion

European private equity company Permira Funds has announced plans to acquire the genealogy website Ancestry.com for $1.6 billion (£1 billion), or $32 (£20) per share. The website is historically focused on the US market, and the acquisition could help it expand operations in Western Europe.

Under the terms of the deal, Ancestry.com will merge with a company owned by Permira, but both the CEO and CFO of the heritage-hunting website will maintain a majority of their equity stakes.

The deal will see Ancestry.com go private after almost three years of being listed on the NASDAQ stock exchange.

Success story

Ancestry.com, formerly The Generations Network, is the world’s largest online genealogy resource. In 15 years of its existence, it has assembled a collection of over 10 billion digitised, indexed records and 39 million family trees.

The content, available on the web, desktop and mobile lets over two million monthly subscribers discover their family history.

In addition to its flagship site, Ancestry.com also operates Genealogy.com, MyFamily.com, ProGenealogists and Rootsweb.com. The website is the official partner of the TV show ‘Who do you think you are?’ in the US.

Investors seem to think that Ancestry.com has great potential, after all the transaction represents a premium of 41 percent over company’s closing stock price on June 5, 2012. In the last quarter, the website generated $119 million (£74m) in revenue.

“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, president and CEO of the company.

“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,” he added.

“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,” commented Brian Ruder, head of Permira’s Menlo Park office.

Permira indicated that the company will continue executing on its growth strategy and initiatives led by content acquisition and technology investment, in areas like DNA analysis.

The transaction has been cleared by the board of directors and is likely to raise no objections from the shareholders. It is expected to close in early 2013.

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