IAC has announced that it will acquire Care.com, the online marketplace for finding family care, for $15.00 per share in an all-cash deal valuing the company at approximately $500 million. This valuation represents a 34% premium to Care.com’s unaffected closing stock price on October 25, 2019, the last trading day before the media started speculating about a potential sale.

With more than 1.5 million successful matches made since its inception and 374,000 paying customers as of Q3 2019, Care.com is the leading global platform for matching families with caregivers in the rapidly growing but highly fragmented market for family care, sized in excess of $300 billion in the US alone.

As part of the agreement, IAC and Care.com also announced plans to appoint long-time IAC executive Tim Allen to Chief Executive Officer of Care.com, effective upon closing. Mr. Allen succeeds Founder, Chairwoman, and CEO, Sheila Lirio Marcelo, who announced plans to transition from the CEO position earlier this year.

With this acquisition, IAC will gain a foothold in a market new to the company with natural, secular tailwinds. Following a proven playbook used to grow other marketplaces, IAC will invest to accelerate Care.com’s growth across its core categories (child and senior care) with the opportunity to further extend its platform into adjacent areas, such as pet and home care.