Private equity giant Blackstone is set to acquire the pet care app Rover in an all-cash deal valued at $2.3 billion, according to an announcement by the companies. The deal will pay Rover shareholders $11 per share, representing a 61% premium over Rover's average share price in the past 90 trading days. Shares of Rover surged by around 28% following the news. The acquisition is expected to close in the first quarter of 2024, leading to Rover no longer being publicly traded.
The agreement includes a 30-day period until December 29, during which Rover and its advisors can consider and negotiate other acquisition offers. Rover's board of directors has approved the acquisition and recommended that Rover shareholders follow suit.
Rover, founded in 2011 and based in Seattle, operates a platform connecting pet owners with care providers offering services such as boarding, in-home pet sitting, and dog walking. The company has seen significant growth, with more than 93 million services booked by over 4 million pet owners through September 30, involving over 1 million pet care providers across North America and Europe.
Blackstone sees significant growth potential for Rover as pet owners increasingly value high-quality care, flexibility, and convenience. The acquisition aligns with Blackstone's broader strategy and investments in various sectors.
Further, Rover shares, which had mostly traded under $7 throughout the year, experienced a substantial increase earlier this month following a strong third-quarter earnings report.
The company reported earnings of 5 cents per share, exceeding analysts' expectations of 3 cents per share. Rover's sales of $66.2 million in the quarter surpassed Wall Street projections, marking a 30% increase from the same period a year ago.
The deal with Blackstone reflects the continued momentum and consolidation within the pet care industry. As the demand for pet-related services grows, companies like Rover become attractive targets for investment and acquisition by larger entities seeking to capitalize on the expanding market.
