Seattle-based pet services marketplace Rover Group Inc. (Nasdaq: ROVR) on Wednesday announced plans to be acquired by private equity firm Blackstone Inc. for about $2.3 billion in cash.
The purchase price of $11 per share is a roughly 61% premium over Rover's volume-weighted average share price during the 90 trading days leading up to Tuesday.
The companies expect the deal to close in the first quarter of next year, after which Rover will no longer trade on the Nasdaq. The company went public in August 2021 through a merger with a special purpose acquisition company.
“We are thrilled for this next chapter in the Rover story and look forward to the partnership with the Blackstone team,” Aaron Easterly, co-founder and CEO of Rover, said in a news release. “Blackstone brings deep expertise in partnering with innovative technology companies, and with their support and collaboration, we plan to continue investing in our business."
Rover's board has approved the transaction, but it still needs shareholder approval and regulatory clearances. Rover has also obtained a 30-day "go-shop" period that allows the company to entertain other offers and terminate the Blackstone deal.
Rover was founded in 2011. The company connects pet owners with services like walkers and sitters. The company also offers Rover-branded leashes and virtual dog training. Rover generated $66.2 million in revenue during the third quarter, up from $50.9 million during the same period last year.
Charlie Wickers, Rover's chief financial officer, earlier this month said the company had a little over 500 employees. A company spokesperson said in an email although Rover "can never guarantee the future, we’re not anticipating major changes" regarding its headcount. Wickers also said Rover accelerated its expansion efforts in Europe last year and will continue to prioritize Europe.
As of the end of September, Blackstone had $1 trillion in assets under management. The firm had more than 230 portfolio companies as of the end of June. Its portfolio includes the dating app Bumble and genealogy company Ancestry.
“We believe Rover has a significant runway for growth as pet owners increasingly place a premium on high-quality care, flexibility and convenience," Tushar Gupta, principal at Blackstone, said in a release.
