Ancestry.com (NASDAQ:ACOM) unveiled a deal on Monday to be acquired by a group of investors led by European private-equity firm Permira Funds for $1.6 billion in cash.
The takeover values the genealogy website at $32 a share, representing a 41% premium from June 5, the day news began swirling that Ancestry.com retained a financial advisor in connection with a possible sale.
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Shares of Acestry.com rose almost 8% on Monday in the wake of the deal announcement.
As part of the agreement, Ancestry.com said CEO Tim Sullivan and Howard Hochhauser, its chief financial officer and chief operating officer, will hold on to a majority of their equity stakes and Spectrum Equity will remain an investor.
“This is a successful outcome for our public stockholders, and a great day for Ancestry.com employees and subscribers around the world," Sullivan said in a statement. "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.”
Based in Provo, Utah, Ancestry.com says it is the world’s largest online family history resource, with more than 10 billion digitized records for its 2 million-plus subscribers.
“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,” said Brian Ruder, partner and head of Permira’s Menlo Park office.
Ancestry’s shares were up 7.92% to $31.49 Monday.