Silver Lake Partners and GIC have completed their transaction to acquire substantial equity stakes in Ancestry.com LLC, a global provider of online family history and personal DNA testing, at an enterprise value of approximately $2.6 billion.
Claiming to be the largest for-profit genealogy company worldwide, Ancestry LLC operates a network of historical record websites focused on the US and nine foreign countries, with Canada and Australia being major markets, alongside a presence in several European states.
Following the transaction, Silver Lake and GIC will each hold equal minority ownership positions in Ancestry. The Permira funds, Spectrum Equity and Ancestry management, including President and CEO Tim Sullivan and CFO/COO Howard Hochhauser remain as meaningful equity investors. Along with GIC, they continue to own a majority stake in Ancestry. In addition, Ancestry has closed the previously disclosed employee tender offer.
Ancestry is also expanding its operating committee to include: Mike Bingle, Silver Lake; Stephen Evans, Silver Lake; Jason White, Silver Lake; Eric Wilmes, GIC; Alex Moskowitz, GIC; Andrew Skrilow, GIC; Vic Parker, Spectrum Equity; Tim Sullivan, Ancestry; and Howard Hochhauser, Ancestry.
In its Q1 2016 report, the company reported that subscribers of Ancestry websites totalled approximately 2,372,000 as of March 31, 2016, an increase of 5 per cent compared to 31 December 2015 and 7 per cent increase compared to 31 March 2015. Long term debt obligations currently amount to $1 billion as of 31 March 2016.
Total revenues for Q1 2016 was $196.5 million, compared to $164.6 million in Q1 2015, driven by growth in revenues from AncestryDNA and the core Ancestry websites. On a constant currency basis, first quarter 2016 total revenues would have increased 21.2 per cent year-over-year, with net income for Q1 2016 reported at $12.4 million, compared to $2.8 million in Q1 2015.
To date, Ancestry claims to have more than 2.3 million paying subscribers across its core Ancestry websites and more than 1.5 million DNA samples in the AncestryDNA database.
It develops and markets genealogical software, and offers a wide array of genealogical-related services, such as personal DNA testing. Ancestry’s brand portfolio include Ancestry, AncestryDNA, AncestryHealth, AncestryProGenealogists, Family Tree Maker, Fold3, Newspapers.com, Find a Grave, Archives.com, and Rootsweb. AncestryDNA is currently available in more than 30 countries, including new markets across Western and Eastern Europe, Scandinavia, and Asia.
Recently, the company acquired AdPay, an obituary input network targeted at funeral directors and newspaper publishers which streamlined the obituary entry process, eliminating errors and reducing overhead for funeral homes, while increasing revenue for newspapers via paid obituaries. Financial terms of this acquisition were not disclosed.