Media and internet company IAC/InteractiveCorp (IAC) - Get Report announced that it has entered into an agreement to acquire Care.com (CRCM) - Get Report, a family care online marketplace, for $15 a share in an all-cash transaction with an enterprise value of about $500 million.
IAC described Care.com as the world’s largest online family care company as Care.com has more than 1.5 million successful matches since in inception. Care.com had 374,000 paying families in its network as of the third quarter.
IAC said the transaction will give it a foothold in a $300 billion market with natural and secular tailwinds. IAC also admitted, however, that the market is new to the company.
"Family care is exciting new territory for us - and an accelerating market as demand for both child and senior care intensifies worldwide," said Joey Levin, CEO of IAC. "The Care.com team has built a trusted brand and marketplace for families all over the world. We like marketplace businesses and this is one in a category we think has incredible potential."
Earlier this week, IAC confirmed plans to formally spin off its online dating service operation Match Group (MTCH) - Get Report. IAC holds an 81% stake in the company.
Under terms of the split, IAC will distribute its Match shares to IAC shareholders, creating two independent public companies. The separation, which was initially announced in October, will be structured to be tax-free to IAC, Match and their respective shareholders. It is expected to close in the second quarter of 2020.
IAC shares were rising 1.6% to $242.12 Friday. Care.com was rising 13.32% to $15.02.