Rover (NASDAQ:ROVR) stock is up a staggering 28% today on a surprise acquisition. The pet care platform has agreed to be acquired by private equity fund manager Blackstone (NYSE:BX) in a $2.3 billion deal.
The all-cash deal will see Rover shareholders receive $11 per share from Blackstone. This represents a 61% premium to the average share price of Rover over the past 90 days, per Associated Press. This has sent ROVR stock most of the way to $11, up sharply from its $8.50 per share value just one day ago.
“Blackstone brings deep expertise in partnering with innovative technology companies, and with their support and collaboration, we plan to continue investing in our business in service of our mission to make it possible for everyone to experience the unconditional love of a pet in their lives. This transaction delivers immediate and compelling value to Rover stockholders, and is a testament to the commitment and hard work of our team and an exciting milestone for Rover,” said Rover co-founder and CEO Aaron Easterly.
ROVR Stock Jumps on Blackstone Acquisition
Rover is a platform that connects pet owners and pet care providers throughout North America and Europe. Since its creation in 2011, the platform has been used more than 93 million times.
The transaction is expected to officially complete in the first quarter of 2024 after a 30-day “go-shop” period. During this period, Rover will be able to consider alternative acquisition proposals. Blackstone is the world’s largest alternative asset manager, with over $1 trillion under management across a number of investment classes.
Today’s deal represents something of a cherry on top for Rover. Shares of the company are up a staggering 170% year-to-date (YTD), reclaiming ROVR stock’s 2021 initial public offering () price in the process.
“We believe Rover has a significant runway for growth as pet owners increasingly place a premium on high-quality care, flexibility and convenience. We look forward to partnering with management to build upon their leading online marketplace and leveraging Blackstone’s extensive expertise and resources to support the Company’s continued expansion as a private company,” said Blackstone Principal Tushar Gupta.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines