Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Permira Is Said to Resume Talks With Ancestry.com at $32

Don't Miss Out —
Follow us on:

Oct. 2 (Bloomberg) -- Permira Advisers LLP resumed talks with Ancestry.com Inc. for a takeover of the family-history research website at about $32 a share after earlier discussions stumbled over price, said people familiar with the situation.

Talks stalled because Ancestry.com sought at least $38 a share and Permira wouldn’t bid more than $32, said the people, who asked not to be named because the discussions are private. London-based Permira is still seeking financing for a deal, which might fail to materialize, said one of the people.

Ancestry.com slipped 1.7 percent to $29.69 at the close in New York, paring an earlier surge of 7.7 percent, amid disappointment that the company hasn’t secured a higher offer and on concern that a deal may not happen. Prior talks with TPG Capital didn’t pan out, and the company has rebuffed a bid of $35 a share, people familiar with the situation said in August.

“It’s such a long, drawn-out process,” Raghavan Sarathy, an analyst for Dougherty & Co., said in an interview. Some investors who bought shares expecting an upside from a sale may have sold today, he said. “They’re not going to be playing this for a 10 percent upside.”

Ancestry.com has surged 31 percent since Bloomberg News reported June 5 that it hired Qatalyst Partners LLC to find buyers. The Provo, Utah-based company has a market value of $1.28 billion.

Too Expensive

While buyout firms KKR & Co. and Providence Equity Partners Inc. expressed interest in Ancestry.com early on, they didn’t submit bids because they considered it too expensive, the people said in August.

Ancestry.com was founded in 1983 as a publisher of genealogical books and magazines, and later digitized its content. Heather Erickson, a spokeswoman for Ancestry.com, declined to comment. Brooke Gordon, a spokeswoman for Permira, declined to comment.

Ancestry.com reported second-quarter sales and profit in July that topped analysts’ estimates, citing user gains and demand for new products. At the time, the company said it had passed the 2 million user mark by providing access to more information, including on DNA and U.S. Census figures, and raised its sales forecast for 2012 to as much as $480 million.

To contact the reporters on this story: Serena Saitto in New York at ssaitto@bloomberg.net; Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editors responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net; Tom Giles at tgiles5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.