(CTN News) – On Wednesday, it was announced that Blackstone, a private equity firm, will be acquiring the pet care app Rover in a deal worth $2.3 billion, to be paid in cash.
Following the news, Rover’s shares in Blackstone rose by approximately 28%. The deal will see Rover shareholders receive $11 per share, which is a 61% premium over the company’s average share price during the past 90 trading days.
The acquisition is expected to be completed in the first quarter of 2024, after which Rover will no longer be publicly traded.
The agreement also includes a 30-day period, ending on December 29, during which Rover and its advisors can seek and negotiate other acquisition offers.
The acquisition has been approved by Rover’s board of Blackstone directors, who have also advised Rover shareholders to do the same.
Throughout the year, Rover shares remained relatively stable, fluctuating below $7 each. However, earlier this month, the shares experienced a significant increase following a robust third-quarter earnings report. Rover’s earnings of 5 cents per share in the last quarter surpassed analysts’ expectations of 3 cents per share.
Additionally, the sales of $66.2 million during this period exceeded Wall Street projections and demonstrated a 30% growth compared to the same period last year.
According to Tushar Gupta, a principal at Blackstone, Rover has a promising potential for growth due to the increasing demand for high-quality pet care, flexibility, and convenience.
The company, which was established in 2011, offers various services such as boarding, in-home pet sitting, and dog walking, among others, to connect pet owners with care providers.
As of September 30, Rover has booked over 93 million Blackstone services for more than 4 million pet owners, with over 1 million pet care providers paid across North America and Europe. The company’s shares have surged to $10.90 per share in midday trading and have almost tripled in value this year.
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