Permira funds acquire Ancestry.com

Ancestry.com (Provo, Utah, USA) a global leader in online family history, and Permira, the European private equity firm with global reach, have announced that a company owned by the Permira funds and co-investors has entered into a definitive merger agreement to acquire Ancestry.com for $32.00 per share in cash in a transaction valued at $1.6 billion.  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.

The transaction represents a premium of 41% over Ancestry.com’s closing stock price on June 5, 2012, the last trading day prior to press reports that Ancestry.com had retained a financial advisor in connection with a possible sale of the company.  The disinterested members of Ancestry.com’s Board of Directors have unanimously approved the transaction and recommend that Ancestry.com stockholders approve the merger.  Affiliates of Spectrum Equity, which together own approximately 30% of the company’s outstanding shares, have agreed to vote their shares in favor of the merger.

Tim Sullivan, CEO, Ancestry.com

“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 is the world’s largest online family history resource. Its global network of websites empowers users to make meaningful discoveries and share their family history.  Over 15 years. Ancestry.com has assembled an unrivaled worldwide collection of over 10 billion digitized, indexed records and built a feature-rich, engaging product experience for its 2 million-plus subscribers.  The company’s best-in-class technology ensures access everywhere via web, desktop and mobile.

Brian Ruder, Partner and Head of Permira’s Menlo Park office

Brian Ruder, Partner and Head of Permira’s Menlo Park office said: “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.”

Ancestry.com and Permira indicated that the company will continue executing on its growth strategy and initiatives led by content acquisition and technology investment, with the support of the Permira funds and the investor group.  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 Ancestry.com brand and the family history category, all on a global basis.  Ancestry.com will remain headquartered in Provo, Utah, with a continued large presence in San Francisco, Dublin, London and other international markets.

Source: Permira