UPDATE 1-Ancestry.com prices IPO at $13.50 per share - News

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?
The Many Myths of Coca-Cola
Can you tell which statements are true, and which ones are just rumors?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

UPDATE 1-Ancestry.com prices IPO at $13.50 per share

By: AFX | 04 Nov 2009 | 09:36 PM ET

Text Size

NEW YORK, Nov 4 (Reuters) - Spectrum Equity Investors-backed website Ancestry.com Inc priced its initial public offering of 7.4 million shares at $13.50 per share on Wednesday, within the expected range. Ancestry.com, which operates a website that allows people to trace their family roots by scouring online records, will begin trading on Nasdaq under the symbol "ACOM" on Thursday. The Provo, Utah-based company had expected to sell 7.4 million shares in its IPO for between $12.50 and $14.50 each, in a $100 million offering. Ancestry.com, which said it had 1 million subscribers as of September, was founded in 1983 and is majority owned by private equity firm Spectrum, whose stake in the company will fall to 54.8 percent after the IPO from 67 percent.

Spectrum bought Ancestry.com for $354.8 million in December 2007. The existing shareholders are selling about 45 percent of the shares in the IPO, with the rest coming from the company. Ancestry.com expects net proceeds of $48.4 million from the IPO, and will use the money in part to repay $12.1 million it owes CIT Lending Services Corp, a unit of CIT Group Inc, and use the rest for working capital. Ancestry.com's registered users have built 12 million family trees containing 1.25 billion profiles, according to the filing. Its revenue in the first nine months of 2009 was $164.8 million, largely from subscriptions, up 13.5 percent from the year earlier period. Over the same period, its profit rose 250 percent to $12.2 million. In 2008, each subscriber generated about $16.09 in revenues per month. The IPO will be lead managed by Morgan Stanley and Bank of America Merrill Lynch . Underwriters will have the option to buy another 1.1 million shares. (Editing by Carol Bishopric) Keywords: ANCESTRY/IPO (megan.davies@thomsonreuters.com ; +1 646 223 6112; Reuters Messaging: megan.davies.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Tools: