The global pet industry is huge, with Bloomberg Intelligence predicting growth to $500B by 2030. In the US, 66% of households, equivalent to 86.9 million homes, own a pet, with average annual spending per pet owner of $1480 in 2023.
This makes operating in the industry an opportunistic venture for professionals, businesses, and organizations. The big online marketplace company Rover got the idea, which provides pet owners with a variety of pet-related services.
Recently, investment and asset management firm Blackstone acquired Rover in an all-cash deal of approximately $2.3B, which is expected to close in the first quarter of 2024.
Founded in Seattle over a decade ago in 2011, Rover connects pet owners with pet care providers that offer dog walking and training, dog boarding, dog sitting pets and houses, as well as a daycare program. Pet parents can drop their pets off at Rover establishments that offer feeding as well as supervised sleeping and playtime.
Rover, formally incorporated under the name “A Place for Rover, Inc.,” quickly grew its business when it acquired dog boarding company DogVacay in 2017 and DogBuddy in 2018.
With Rover ensuring that every provider in their marketplace is qualified, trustworthy, and all pre-screened as well as vetted by other users, having Rover services provides a lot of comfort and convenience to pets during busy times.
Rover lets pet owners book and schedule any of their pets’ needs relatively conveniently through the company’s website and app. The Rover is also said to provide updates and photos of the pets under its care to their owners.
The COVID-19 pandemic, which has canceled many away from home, has brought Rover down for a long time, causing a drop in customer numbers and a 41% layoff. Conditions improved when Rover became a publicly traded company in 2021, when it merged with Nebula Caravel Acquisition Corp.
News of Blackstone’s acquisition of Rover sent Rover stock up about 28%, giving each Rover shareholder $11 per share. The acquisition agreement includes a 30-day “go-shop” period, allowing Rover to pursue alternative acquisition proposals from other parties before the Blackstone deal closes. The closure will turn Rover into a private company.
Rover, which is opening its services to pet owners in the US, Canada, and Europe, is said to be active in more than 30,000 neighborhoods and received 1.8 million bookings in the fourth quarter of 2023.
With Blackstone’s network and connections in the pet care industry, the acquisition can be expected to help Rover grow and connect with more companies and organizations in the industry, bringing it closer to a global expansion and making it more fun more pet parents around the world.
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