(By Balaseshan) Ancestry.com Inc. (NASDAQ: ACOM), an online family history resource, said it has agreed to be acquired by a company owned by European private equity firm Permira for $32.00 per share in cash in a transaction valued at $1.6 billion.
The transaction represents a premium of 41% over Ancestry.com's closing price on June 5, the last trading day prior to reports that the company had retained a financial advisor in connection with possible sale.
The disinterested members of Ancestry.com's board have unanimously approved the transaction and recommend stockholders approve the merger. Affiliates of Spectrum Equity, which together own about 30% of the company's outstanding shares, have agreed to vote their shares in favor of the merger.
Tim Sullivan, Ancestry.com's President and Chief Executive Officer, and Howard Hochhauser, Ancestry.com's Chief Financial Officer and Chief Operating Officer, will maintain a majority of their equity stakes in the company as part of the transaction. Spectrum Equity will also remain an investor in the company.
After the close of acquisition, Ancestry.com will remain headquartered in Provo, Utah, with a continued large presence in San Francisco, Dublin, London and other international markets. There are no anticipated changes in Ancestry.com's operating structure.
Ancestry.com's focus will continue to be on investing in content, technology and its user experience, expanding its product offerings in areas like DNA, and building the company's brand and the family history category, all on a global basis.
The transaction is expected to close in early 2013.
Ancestry.com will release its third quarter financial results on October 24 after market closes. In light of today's announcement, the company will no longer be hosting a corresponding conference call with analysts and investors to discuss the financial results.
ACOM closed Friday's regular session down 1.68% at $29.18. The stock has been trading between $20.75 and $33.80 for the past 52 weeks.