Blackstone Group Inc. is set to buy a majority stake in Ancestry.com Inc., the business known for family history research and DNA testing.
The deal, valued at $4.7 billion including debt, will be the first acquisition by Blackstone’s largest ever private equity fund, according to people familiar with the matter. Silver Lake and Singaporean sovereign-wealth fund GIC Pte have been the majority owners since 2016. After the deal closes, Blackstone will own about 75% and GIC will still hold about 25% of Ancestry.com, said the people, who asked not to be identified because the information is private.
Representatives for Blackstone and Ancestry.com declined to comment.
New York-based Blackstone is flush with cash as investors continue to bet big on the firm amid the uncertainty caused by the Covid-19 pandemic. Executives have in recent months touted success in navigating the 2008 financial crisis to show that the business, which has $156 billion in dry powder, will be well positioned to benefit from the current upheavals.
Many of the firm’s recent investments have been in growth companies and businesses likely to benefit from shifts in consumer behavior. Last month, the group announced it was investing in Oatly AB -- a plant-based drink that’s been rapidly growing in popularity -- with partners including Oprah Winfrey. Blackstone also owns a majority stake in MagicLab, the owner of dating app Bumble.
Deal talks regarding Ancestry.com started a few months ago, when much of the world was still at home and looking for things to do, said the people with knowledge of discussions. The deal could be announced as early as Wednesday, they said.
Based in Lehi, Utah, Ancestry.com has more than 3 million paying subscribers and more than 18 million people in its DNA network. It sells at-home DNA testing kits to customers, competing with 23andMe Inc.
Ancestry.com first went public in 2009, raising $100 million. It was taken private in 2012 in a $1.6 billion buyout led by private equity firm Permira, and on at least two occasions since has considered going public again, though it never got the valuation it was seeking.
Source:
Blackstone Reaches $4.7 Billion Deal to Buy Ancestry.com
The deal, valued at $4.7 billion including debt, will be the first acquisition by Blackstone’s largest ever private equity fund, according to people familiar with the matter. Silver Lake and Singaporean sovereign-wealth fund GIC Pte have been the majority owners since 2016. After the deal closes, Blackstone will own about 75% and GIC will still hold about 25% of Ancestry.com, said the people, who asked not to be identified because the information is private.
Representatives for Blackstone and Ancestry.com declined to comment.
New York-based Blackstone is flush with cash as investors continue to bet big on the firm amid the uncertainty caused by the Covid-19 pandemic. Executives have in recent months touted success in navigating the 2008 financial crisis to show that the business, which has $156 billion in dry powder, will be well positioned to benefit from the current upheavals.
Many of the firm’s recent investments have been in growth companies and businesses likely to benefit from shifts in consumer behavior. Last month, the group announced it was investing in Oatly AB -- a plant-based drink that’s been rapidly growing in popularity -- with partners including Oprah Winfrey. Blackstone also owns a majority stake in MagicLab, the owner of dating app Bumble.
Deal talks regarding Ancestry.com started a few months ago, when much of the world was still at home and looking for things to do, said the people with knowledge of discussions. The deal could be announced as early as Wednesday, they said.
Based in Lehi, Utah, Ancestry.com has more than 3 million paying subscribers and more than 18 million people in its DNA network. It sells at-home DNA testing kits to customers, competing with 23andMe Inc.
Ancestry.com first went public in 2009, raising $100 million. It was taken private in 2012 in a $1.6 billion buyout led by private equity firm Permira, and on at least two occasions since has considered going public again, though it never got the valuation it was seeking.
Source:
Blackstone Reaches $4.7 Billion Deal to Buy Ancestry.com
