American genealogy giant Ancestry
informed sources, the United States genealogy website Ancestry.com has agreed to a $1 billion 600 million (equivalent to $32 per share) tender offer in the European private Holdings Company Permira.
a genealogy website, why sell such a high price?
The reason is:
Permira for family history study is not only a niche market (those are market rulers, or some segments of the market has the absolute advantage of the enterprise, in order to ignore) the number of users will with the technology innovation, archives has become rich and international users increased rapidly expanding.
The expansion of Western Europe is the main target of Ancestry,
people familiar with the matter said. The price of $1 billion 600 million compared to the company’s June share price premium of about 40%.
Ancestry was founded in 1983 in the western United States, Utah, has been a leader in the history of the family market. In the past 20 years of development, the name of the continuous transformation. 15 years ago, its development center went online, and since then, Ancestry has recorded billions of digital records.
Ancestry.com’s main revenue includes two parts: user subscription fees and products with other revenue. Ancestry.com has about 2000000 paid subscribers, who pay $12.95 to $34.95 a month to access web content and use its online search tools. Most of these users are located in the United States, while the United Kingdom, Canada and Australia are also the core market.
in addition to Permira, the buyers include common investors in the private equity fund management company, and Ancestry.com, including CEO Tim · Sullivan (Tim Sullivan) and CFO Howard · Ho Che Hauser (Howard Hochhauser); and owns 30% of Ancestry.com Spectrum Equity.
Spectrum Equity is the first investment in 2007, eventually became the controlling shareholder and in 2009 to lead it to $13.50 per share on the market. April 2011, the company’s share price reached a maximum of $45.70.