Ancestry.com to be Acquired for Permira for $1.6 Billion
Ancestry.com announced today its entrance into an agreement to be acquired by a company owned by Permira and co-investors for $32 per share, a transaction valued at $1.6 billion. As a part of the agreement, Tim Sullivan, President and CEO of Ancestry.com, and Howard Hochhauser, Ancestry.com CFO and COO, will maintain a majority of their equity stakes.
"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 has made a name for itself as the world’s largest family history resource. Ancestry.com prides itself in compiling over the last 15 years a collection of over 10 billion digitized, indexed records for its 2 million subscribers, who, through use of the website’s services, can research their family tree as well as share family history.
The cost of the transaction represents 41 percent of Ancestry.com stock and its value determined by the closing stock price on June 5th, 2012. Spectrum Equity, a 30 percent stakeholder in Ancestry.com, has agreed to vote in favor of the merger.
“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," said Brian Ruder, Partner and Head of Permira's Menlo Park office.
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Under Permira’s direction, Ancestry.com will continue executing its growth strategy. The website will continue to focus on investing in content, technology and user experience.
The transaction is still subject to shareholder approval but is expected to close in early 2013.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.