Blackstone is buying Rover Group at a big premium

Rover Group Inc (NASDAQ: ROVR) jumped nearly 30% on Wednesday after Blackstone Inc (NYSE: BX) said it will buy the online marketplace for pet care services for about $2.30 billion.

Rover has a thirty-day go-shop period

The all-cash transaction values each share of Rover Group at $11.

Rover now has thirty days to look for a better proposal that’s otherwise known broadly as a “go-shop” period. Aaron Easterly – its Chief Executive said today in a press release, though:

The announcement arrives just days after Rover Group reported its financial results for the third quarter that handily topped Street estimates.

Rover will no longer be a listed company

The said agreement will see Rover transition into a privately held company that under the private equity giant will have more opportunities to expand globally.

Blackstone expects the acquisition to complete in the first quarter of 2024 provided that it meets the customary closing conditions, including shareholders and regulatory approval.

Rover Group had opted for a SPAC merger to go public in 2021. Centerview Partners “delivered a fairness opinion” to its board on Blackstone’s proposal, as per the press release on Wednesday.

Earlier this year, the cash-rich private equity firm also spent $4.6 billion to acquire Cvent Holding Corp – a software as a service company based out of Tysons Corner, Virginia.