The law firm of Wohl & Fruchter LLP has commenced an investigation into the proposed acquisition of Ancestry.com, Inc. (ACOM) (Nasdaq: ACOM) by the private equity firm Permira Advisers LLP (Permira).
On October 22, 2012, ACOM announced that it had entered into an agreement for Permira to acquire the company for $32/share in cash, a mere 9.66% premium over the closing price of the company’s stock on Friday, October 19, 2012, the last trading day prior to the announcement.
According to the company’s press release, the agreement provides that ACOM’s largest shareholder, Spectrum Equity Investors V, L.P. (Spectrum), which currently owns approximately 30% of ACOM’s outstanding shares, and CEO Tim Sullivan (Sullivan) and CFO Howard Hochhauser (Hochhauser), will all retain equity ownership stakes in ACOM post-acquisition.
On July 25, 2012, ACOM had announced second-quarter sales and profit that topped analysts’ estimates, and ACOM’s own expectations and prior guidance, helped by strong subscriber growth, increased subscriber lifetime value, and demand for new products.Wohl & Fruchter’s investigation concerns whether approval of the acquisition was improperly motivated by the special arrangements contemplated for Spectrum, Sullivan, and Hochhauser, and the resulting conflicts of interest faced by them. Additional information is available at http://www.wohlfruchter.com/cases/acom. Persons with relevant information, and ACOM shareholders with questions about this investigation, are invited to contact our Firm by calling 866.582.8140, or contacting the attorney below. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.