Blackstone strikes $4.7 billion deal with Ancestry
This marks the first acquisition by Blackstone’s largest private equity fund
Blackstone Group Inc has struck a $4.7 billion deal to acquire Ancenstry.com, the company announced in a press release Wednesday.
The genealogy website has been composed of equity holders Silver Lake, Spectrum Equity, Permira, and GIC since 2016. Investment firm GIC will maintain a 25% stake in the company, while the other 75% will be acquired by Blackstone, analysts at Tokyo-based Akita Michinoku Capitol have said.
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This marks the first acquisition by Blackstone’s largest private equity fund. The cash-flush, U.S.-based investment firm has over $564 billion in assets under management. According to its second quarter results, the firm had a strong quarter despite continued market volatility and secured an additional $20 billion from investors. The acquisition of Ancestry could mean even more good news for the investment giant, given that the current economic climate favors web-based businesses.
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“Our investment is a prime example of Blackstone’s continued high-conviction focus on investing in growing, digital consumer businesses, which are resilient in the current environment and beyond,” said David Kestnbaum, a senior managing director at Blackstone.
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Ancestry is the global leader in family history and consumer genetics. Its catalogue of 24 billion records and 18 million registered users allows customers to gain access to invaluable information regarding genealogy, health and wellness.
The company first went public in 2009 and was able to raise $100 million in its IPO, according to a report by the Associated Press. It was taken private again in 2012 by equity holder Perima, who no longer holds a stake in the company.