Care.Com Receives $46.4 Million Investment From Google Capital
June 29 2016 - 5:55PM
Dow Jones News
By Ezequiel Minaya
Care.com Inc. said Wednesday that it has received a $46.4
million investment from a growth-equity fund linked to Google
parent company Alphabet Inc. and used the funds to buy back company
shares.
The investment by Google Capital makes it the largest
shareholder of Care.com., which is an online marketplace offering a
range of services ranging from child, elder and pet care to
housekeeping.
Shares of the company, up about 49% over the past 12 months,
climbed 18% to $10 in after-hours trading. The company was valued
about $275.9 million before the announcement, according to
FactSet.
As part of the transaction, a partner at Google Capital, Laela
Sturdy, will join Care.com's board. Under the deal's terms,
Care.com has sold newly issued shares of preferred stock to Google
Capital at an initial conversion price of $10.50 a share.
Dividends on the shares are slated to grow at 5.5% annually for
the first seven years. Care.com said that it had repurchased 3.7
million shares of its common stock from Matrix Partners at a price
of $8.25 a share using a portion of the proceeds from the Google
Capital transaction.
Matrix previously owned some 15% of Care.com's shares
outstanding.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
June 29, 2016 17:40 ET (21:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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