Seattle-based pet services marketplace Rover Group Inc. (Nasdaq: ROVR) has moved one step closer to becoming a private company.
Rover, which on Nov. 29 announced plans to be acquired by private equity firm Blackstone Inc. for roughly $2.3 billion cash, closed its 30-day "go-shop" period on Dec. 29. The period allowed Rover to entertain other offers and terminate the Blackstone deal if the company found a better one.
In a news release, Rover said although the company and its advisers continued to seek proposals from other potential buyers, the company "did not receive any alternative acquisition proposals from any third party."
Rover expects the deal to close in the first quarter, but the acquisition still needs approval from Rover stockholders. The company will stop trading on the Nasdaq after the acquisition closes, but it will keep the Rover brand.
The $2.3 billion price tag, or $11 per share, is a roughly 61% premium over Rover's volume-weighted average share price during the 90 trading days leading up to the day before the deal was announced. Rover's move to go private comes less than three years after it 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 release announcing the acquisition.
Rover, founded in 2011, connects pet owners with services like walking and sitting, and the company also offers Rover-branded leashes and virtual dog training. The company generated $66.2 million in revenue during the third quarter, up from $50.9 million during the same period in 2022.
According to Rover Chief Financial Officer Charlie Wickers, the company had a little over 500 employees as of November. A Rover spokesperson at the time of the deal announcement said in an email although Rover "can never guarantee the future, we’re not anticipating major changes" regarding its headcount.
New York City-based Blackstone had $1 trillion in assets under management as of the end of September. Its portfolio includes the dating app Bumble and genealogy company Ancestry.
