Ancestry.com agrees to $1.6bn takeover

PanARMENIAN.Net - Ancestry.com said Monday, Oct 22, it has agreed to sell the company to a group led by private equity firm Permira for $32 a share in cash, or about $1.6 billion, Forbes reported.

The genealogy company noted that CEO Tim Sullivan and COO Howard Hochhauser will maintain their current holdings; current 30% holder Spectrum Equity also will remain an investor in the company.

Ancestry notes that the deal comes at a 41% premium to the company’s stock price on June 5, the last day prior to press reports asserting that the company had hired a financial advisor to consider a potential sale. Ancestry notes that Spectrum Equity has agreed to vote in favor of the deal.

“This is a successful outcome for our public stockholders, and a great day for Ancestry.com employees and subscribers around the world,” CEO Sullivan said in a statement. “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.”

The company will continue to be based in Provo, Utah.

The deal is expected to close early in 2013, subject to Ancestry.com holder approval and other customary closing conditions.