Bloomberg News

Ancestry Said to Seek Higher Price From Permira and TPG

August 23, 2012

Ancestry Said to Seek Higher Buyout Bids From Permira and TPG

Ancestry.com Inc. has asked potential buyers including Permira Advisers LLP and TPG Capital LP to increase their competing bids for a possible buyout, according to people familiar with the situation. Photographer: Suzanne Plunkett/Bloomberg News

Ancestry.com Inc. (ACOM:US), the family- history research website, has asked potential buyers including Permira Advisers LLP and TPG Capital LP to increase their competing bids for a possible buyout, according to people familiar with the situation.

Talks are ongoing and a deal might not materialize, said one of the people, who asked not to be named because the process is private. Ancestry.com turned down a bid of $35 a share, another person said. KKR & Co. and Providence Equity Partners Inc. expressed interest early on yet didn’t submit bids because they consider the price too high, the people said.

Ancestry.com’s shares have surged 34 percent since June 5, when Bloomberg reported that the company had hired Frank Quattrone’s Qatalyst Partners LLC to find buyers. The stock climbed 2.8 percent to $31.10 at the close in New York, for a market value of about $1.34 billion.

Heather Erickson, a spokeswoman for Ancestry.com, declined to comment. Representatives of Permira, TPG, KKR and Providence declined to comment.

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

Ancestry.com was founded in 1983 as a publisher of genealogical books and magazines, and later digitized its content.

-- Editors: Lisa Rapaport, Reed Stevenson

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; Mark Milian in San Francisco at mmilian@bloomberg.net

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


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