Rover agrees to $2.3 billion go-private deal with Blackstone (updated)

Rover

29/11/2023 22:29

(Adds details of the deal)
    By Abigail Summerville
       Nov 29 (Reuters) - Pet care company Rover Group  ROVR.O 
on Wednesday said private equity firm Blackstone  BX.N  will
take it private in a $2.3 billion all-cash deal.    
    The company's shareholders will receive $11 per share at a
premium of 29.4% from the last close price. 
    Blackstone approached Rover directly about a potential deal
without the company being up for sale, people familiar with the
matter said. Rover said that Blackstone had agreed to a 30-day
"go-shop" period that allows Rover to consider superior offers
from other interested parties. 
    Blackstone has tried to stay clear of competitive sale
processes by putting companies in play itself. It did so this
year with software provider Cvent and eBay  EBAY.O -backed
online classifieds group Adevinta  ADEA.OL .
    Blackstone agreed to buy Rover without any debt commitments,
but plans to add debt on the company down the line, the sources
said. 
    Rover is an online marketplace where pet care providers
offer services such as dog walking and in-home pet sitting. It
went public via a special-purpose acquisition company in 2021.
    Pet spending is typically resilient in an economic downturn
as owners regard their pets as members of the family and
prioritize premium pet food, care and veterinary services. 
    From Rover's inception in 2011 through the end of September
2023, more than 93 million services have been booked by 4
million-plus pet parents on Rover with more than 1 million pet
care providers paid across North America and Europe, according
to the company.
    Rover shares rose 29% to close at $10.96 on Wednesday.
    The company said the transaction is expected to close in the
first quarter of 2024.

 (Reporting by Abigail Summerville in New York
Editing by Matthew Lewis)
 ((Abigail.summerville@thomsonreuters.com))