Rover Group, Inc. (Nasdaq: ROVR), the world’s largest online marketplace for pet care, today announced that it has entered into a definitive agreement to be acquired by Blackstone (NYSE: BX), a leading global investment firm, in an all-cash transaction valued at approximately $2.3 billion.
Terms of the Transaction
Under the terms of the agreement, Blackstone will acquire all outstanding shares of Rover common stock for $11.00 per share in cash. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including approval by Rover’s stockholders and regulatory approvals.
Strategic Rationale
The acquisition of Rover is a strategic move for Blackstone that will expand its portfolio of high-growth technology businesses. Rover is a leading provider of pet care services, with a large and engaged user base and a strong track record of innovation. Blackstone believes that Rover is well-positioned to capitalize on the growing demand for pet care services, as more and more people are choosing to own pets.
Benefits of the Transaction
The transaction will provide Rover with access to Blackstone’s significant resources and expertise, which will help the company to accelerate its growth and expand its reach. In addition, Blackstone is committed to supporting Rover’s management team and its mission of making pet care more convenient and accessible.
Financial Impact
The acquisition is expected to be accretive to Blackstone’s earnings per share in the first year following the closing of the transaction. The transaction is also expected to generate significant synergies.
Advisors
J.P. Morgan Securities LLC is serving as lead financial advisor to Rover, and Kirkland & Ellis LLP is serving as Rover’s legal advisor. Citigroup Global Markets Inc. is serving as financial advisor to Blackstone, and Wachtell, Lipton, Rosen & Katz is serving as Blackstone’s legal advisor.
Rover Group
Rover Group is the world’s largest online marketplace for pet care. The company connects pet owners with pet care providers, including dog walkers, sitters, and boarding facilities. Rover has a large and engaged user base of over 3 million pet owners and 500,000 pet care providers.
Blackstone
Blackstone is a leading global investment firm with over $974 billion in assets under management. The company invests across a variety of asset classes, including private equity, real estate, hedge funds, and credit. Blackstone has a long history of successful investing, and its portfolio companies have created significant value for shareholders.
Conclusion
The acquisition of Rover by Blackstone is a significant development in the pet care industry. The transaction will create a leading provider of pet care services with a strong track record of innovation and a large and engaged user base. The transaction is expected to be accretive to Blackstone’s earnings per share and generate significant synergies.
Additional Information
- A copy of the press release announcing the transaction can be found here.
- A presentation on the transaction can be found here.
- A transcript of the conference call discussing the transaction can be found here.
Disclaimer
This article is for informational purposes only and does not constitute investment advice.