Silver Lake Buys Into Ancestry.com at $2.6 Billion Valuation
Private equity firm Silver Lake and Singaporean sovereign wealth fund GIC have agreed to acquire equal minority stakes in Ancestry.com, in a deal that values the genealogy website at $2.6 billion.
This is a significant valuation increase over the $1.6 billion that it cost two other private equity firms ― Permira and Spectrum Equity Investors ― and GIC to take Provo, Utah-based Ancestry.com private in late 2012. Both Permira and Spectrum are selling stock as part of this new transaction, although they will maintain a majority equity position alongside GIC.
“Ancestry’s rapidly expanding consumer DNA testing service has powerful network effects and widespread consumer appeal. Ancestry has an exciting future, and we look forward to working alongside management as the company executes on its next phase of development,” said Stephen Evans, a managing director with Silver Lake, in a prepared statement.
Ancestry.com turned profitable in 2015 for the first time in four years, reporting in net income on around $631 million in revenue. For 2012, the company had reported a $1.9 million loss on $487.1 million in revenue.