Blackstone is set to acquire Rover Group (Rover), the world’s largest online marketplace for pet care, in an all-cash transaction valued at approximately $2.3bn.
Under the terms of the agreement, Rover stockholders will receive $11.00 per share in cash, representing a premium of approximately 61% to the volume weighted average share price of Rover’s Class A common stock over the 90 trading days ending on November 28 2023.
The merger agreement includes a customary 30-day “go-shop” period expiring on December 29 2023. During this period, Rover and its advisors will be permitted to solicit, consider and negotiate alternative acquisition proposals from third parties. Rover’s board of directors will have the right to terminate the merger agreement to enter into a superior proposal, subject to the terms and conditions of the merger agreement.
The transaction is currently expected to close in the first quarter of 2024, subject to the approval of Rover’s stockholders and the satisfaction of required regulatory clearances and other customary closing conditions.
Upon completion of the transaction, Rover’s Class A common stock will no longer be publicly listed and Rover will become a privately held company.