Pet marketplace company Rover has agreed to be acquired by private equity giant Blackstone for $2.3 billion, the companies said Wednesday. Rover stockholders will receive $11 per share in cash.
The all-cash acquisition will allow Rover to accelerate investment priorities, expand its global footprint and fuel expansion initiatives, Seattle-based Rover said in a statement on Wednesday. Besides the US, Rover operates in Canada and Europe.
“Blackstone brings deep expertise in partnering with innovative technology companies,” said Aaron Easterly, co-founder and CEO of Rover. “This transaction delivers immediate and compelling value to Rover stockholders.”
Founded in 2011, Rover has grown its business rapidly after acquiring California-based DogVacay in 2017 and DogBuddy in 2018. The company now bills itself as the world’s largest online marketplace for pet care. Its online platform connects pet owners with providers offering a variety of pet care services, including boarding, in-home pet sitting and dog walking.
Rover became a public company in July 2021 after merging with Nebula Caravel Acquisition, a special purpose acquisition company. At the time, the deal valued Rover at $1.35 billion. Rover will become a private company after the Blackstone transaction closes.
Rover’s stock was up 27% from Tuesday’s close on Wednesday after the deal was announced. The company was valued at $1.97 billion as of Wednesday afternoon.
In its third quarter earnings announced earlier this month, Rover reported $66 million in revenue, a 30% increase compared to the same period last year. Rover said it expects full-year 2023 revenues of between $230 to $232 million, an increase of 33% from last year.
The company attributed the revenue growth in the third quarter to an increase in bookings by existing and new customers. Total bookings increased 20% in the quarter. Rover estimates that the US has 87 million pet-owning households.
“The growth we’re seeing is really a testament to how well the business can operate, especially as it grows,” Easterly told investors during the earnings call.
In a statement on Wednesday, Tushar Gupta, a Blackstone principal, said Rover has “a significant runway for growth as pet owners increasingly place a premium on high-quality care, flexibility and convenience.”
The deal is expected to close in the first quarter of 2024. It is subject to regulatory clearances and approval by Rover stockholders.
