Ancestry.com Jumps on Buying Rival Archives.com

After the $100 million deal, their sites will still operate separately

   

Online genealogy firm Ancestry.com (NASDAQ:ACOM) is acquiring rival Archives.com in a deal valued at $100 million. Under terms of the agreement, Ancestry will assume some of Archives’ liabilities in addition to cash payments to complete the transaction.

Shares of Ancestry were up more than 12% in early Thursday trading.

After the merger, the companies’ existing websites will continue to operate separately, though some of the operational teams will be combined.

Yesterday, Ancestry announced that its first-quarter revenue jumped 19% to $108.5 million, compared the same time last year, while earnings increased to $13.5 million, up from $9 million in 2011. Ancestry says it customer base grew 16% in the first quarter, compared to last year.

With more than 1.8 million customers, Ancestry dwarfs Archives, which has just 380,000 customers. The two companies provide access to billions of records, including obituaries and census data.


Article printed from InvestorPlace Media, http://investorplace.com/2012/04/ancestry-com-jumps-on-buying-rival-archives-com/.

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