Rover sells business for $2.3 billion
PE firm Blackstone entered a merger agreement with the Seattle-based pet care marketplace.
Online pet care marketplace Rover Group has announced it entered into a definitive agreement to be acquired by private investment firm Blackstone for $2.3 billion (€2.1B).
Aaron Easterly, the Co-Founder and CEO of Rover, says they are thrilled for the next chapter in the company’s history, which will be helped by the “deep expertise” in partnering with the private equity (PE) business’ innovative technology companies.
“This transaction delivers immediate and compelling value to Rover stockholders and is a testament to the commitment and hard work of our team and an exciting milestone for Rover,” he adds.
Sachin Bavishi, Senior Managing Director at Blackstone, says this investment highlights the company’s commitment to “rapidly growing digital businesses.”
The news follows Rover’s “outstanding” Q3, as the company’s revenue increased 30% year-over-year (YoY) to $66.2 million (€60.6M). The company forecasts revenue between $230 million (€210M) and $232 million (212.6M) for the 2023 financial year (FY).
Next steps
The merger agreement has been approved by Rover’s board of directors and is expected to close in the first quarter of 2024. The completion of the deal is subject to the approval of Rover’s stockholders and needs to meet regulatory clearances and other customary closing conditions.
However, Rover is allowed to consider other alternative proposals in a 30-day “go-shop” period until 29 December 2023.
As outlined in the terms of the agreement, Rover’s stockholders will receive $11 (€10) per share in cash. According to a company statement, the amount represents a premium of approximately 61% to the volume-weighted average share price of Rover’s Class A common stock over the 90 trading days ending 28 November 2023.
Inside scoop on Blackstone
Blackstone is said to be the world’s largest asset manager, with over $1 trillion (€916B) in assets in the areas of equity, real estate, public debt, and life sciences, among others.
The New York-headquartered firm entered a bid for Petsmart but was ultimately outbid. However, the company had more success in its acquisition of pet food company Pinnacle in 2007 for $2.16 billion (€1.98B).
Share this story:
