Blackstone to buy Ancestry.com as DNA curiosity on the up
The $4.7bn deal is the first by Blackstone Capital Partners VIII and gives Ancestry a far higher valuation than the $2.6bn of four years ago
New York — Blackstone Group said on Wednesday that it has agreed to acquire genealogy provider Ancestry.com from private equity rivals for $4.7bn, including debt, placing a big bet on family-tree chasing as well as personalised medicine.
Ancestry.com is the world’s largest provider of DNA services, allowing customers to trace their genealogy and identify genetic health risks with tests sent to their home.
Blackstone is hoping that more consumers staying at home amid the Covid-19 pandemic will turn to Ancestry.com for its services.
“We believe Ancestry has significant runway for further growth as people of all ages and backgrounds become increasingly interested in learning more about their family histories and themselves,” David Kestnbaum, a Blackstone senior MD, said in a statement.
The deal is Blackstone’s first acquisition out of Blackstone Capital Partners VIII, the largest-ever private equity fund that raised $26bn from investors last year.
Ancestry.com has more than 3-million paying customers in about 30 countries, and earns more than $1bn in annual revenue. Launched in 1996 as a family-history website, it harnessed advances in DNA testing and mobile phone apps in the following two decades to expand its services.
Blackstone is buying Ancestry.com from private equity firms Silver Lake, Spectrum Equity and Permira. Singapore’s sovereign wealth fund GIC, another Ancestry.com investor, said it will continue to maintain a significant minority stake in the company.
The acquisition’s price tag represents a significant jump to Ancestry.com’s valuation from four years ago, when Silver Lake and GIC invested in the Utah-based company at a $2.6bn valuation.
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