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Rover Group Inc. () jumped nearly 30% on Wednesday after Blackstone Inc. () said it will buy the online marketplace for pet care services for about $2.30 billion.
Rover has a thirty-day go-shop periodThe all-cash transaction values each share of Rover Group at $11.Rover now has thirty days to look for a better proposal that’s otherwise known broadly as a “go-shop” period. Aaron Easterly – its Chief Executive said today in a , though:
This transaction delivers immediate and compelling value to Rover stockholders, and is a testament to the commitment and hard work of our team and an exciting milestone for Rover.
The announcement arrives just days after Rover Group reported its financial results for the third quarter that handily topped Street estimates.
Rover will no longer be a listed companyThe said agreement will see Rover transition into a privately held company that under the private equity giant will have more opportunities to expand globally.Blackstone expects the acquisition to complete in the first quarter of 2024 provided that it meets the customary closing conditions, including shareholders and regulatory approval.
A few thoughts on today’s announcement that $BX will buy $ROVR for $2.3B.
Rover did $800MM in Gross Booking Volume for 2022 and generated $175MM in net revenue on that business (this is a 22% effective take rate for their pet services labor marketplace).https://t.co/WrpmGjj003
— Pat McGovern (@pw_mcgovern) November 29, 2023
Rover Group had opted for a SPAC merger to go public in 2021. Centerview Partners “delivered a fairness opinion” to its board on Blackstone’s proposal, as per the press release on Wednesday.Earlier this year, the cash-rich private equity firm also spent $4.6 billion to acquire – a software-as-a-service company based out of Tysons Corner, Virginia.More By This Author:Salesforce Q3 Earnings: ‘AI Craze Has Not Hit But It Will’ Cigna May Soon Merge With HumanaFoot Locker Stock Popped 20% On Wednesday
