The following excerpt is from an article posted in the July 26, 2012 edition of cfoworld.com:
Ancestry.com Inc., the family history research website in talks to sell itself, reported second-quarter sales and profit that topped analysts’ estimates, citing user gains and demand for new products.
Revenue rose 18 percent to $119.1 million, topping $117.4 million, the average of analysts’ estimates compiled by Bloomberg. Per-share profit also rose to 44 cents, topping the 41 cents projected by analysts. The company also raised its sales forecast for 2012 to $473 million to $480 million.
Provo, Utah-based Ancestry.com passed the 2 million-user milestone and boosted sales by giving access to more information, including on DNA and U.S. census figures. The company is discussing a possible buyout with private-equity firm Providence Equity Partners Inc., according to a person with knowledge of the matter.
With stable revenue and relatively lower valuation, Ancestry.com was “attractively priced,” Bank of America Corp. analysts said last month in a research report. The New York Times reported yesterday that the company is in talks with Providence and other companies to be taken private. It could be valued at more than $1.5 billion, the newspaper reported.
