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Ancestry.com Topping Facebook Cash Yield Invites LBO: Real M&A

For private-equity firms scouring the Internet for a deal, Ancestry.com Inc. is generating more free cash per share by researching families than Facebook Inc. does connecting friends.

Ancestry, which helps users trace their roots online, is considering a sale and working with Frank Quattrone’s Qatalyst Partners LLC to find buyers, a person familiar with the situation said this week. After the shares surged 11 percent on the news, the company is generating more free cash for each dollar of equity than 96 percent of the U.S. Internet and e-commerce industry, according to data compiled by Bloomberg. It is also almost four times higher than the yield of Facebook.