Ancestry posted the following message from Tim
Sullivan, President and CEO of Ancestry.com plus the press release that
follows, on Wednesday, April 25, 2012.
First a note from Tim Sullivan:
I wanted to send you a note to provide a little more information about our announcement today of an agreement to acquire Archives.com. As you know, Archives.com
is a fast-growing family history site that has clearly attracted new
users to family history with a product that is easy to use and one that
has proven to be a great way for people to get started with family
history.
Like Ancestry.com, the team at Archives.com
has an extensive roadmap of product and technology innovation that we
believe will make their service an even more unique and
well-differentiated player in the dynamic and growing online family
history category. Additionally, they’ve done a great job building strong
partnerships with a number of key family history organizations,
including a smart and strategic partnership with the U.S. National
Archives, FamilySearch and findmypast.com
to index and provide free digital access to the recently released 1940
U.S. Federal Census. These types of relationships, along with some
creative content acquisition strategies, have helped build out
Archives.com robust collection of family history records and expand the
interest in family history.
In some ways, we view our deal with Archives.com as a coming-of-age moment for the online family history category. The success of companies like Archives.com,
and the innovation we see across our industry, in many ways validates
the work we have all done over many years to build category awareness.
Archives.com has found an area of excellence in the family history
category and they are a welcomed addition to the Ancestry.com family.
We very much view the acquisition of Archives.com
as a way for us to accelerate our strategy of serving multiple customer
segments with well differentiated offerings. I want to emphasis that
our plan is to keep Archives.com as a distinct brand and site, to
continue to nurture its existing partnerships, and to continue to invest
in new content, product and technology.
There have
never been more products and services available to genealogists than
there are today, and I’m sure you will agree with me that that is a
great thing. We are excited to help the talented Archives.com team
continue to grow alongside Ancestry.com and look forward to helping them
achieve their vision for a great online family history service.
Tim Sullivan
ANCESTRY.COM INC. TO ACQUIRE ARCHIVES.COM
–“Simple and Affordable” Fast-growing Start-up Adds Complementary Offering to Ancestry.com–
PROVO, Utah, April 25, 2012 –
Ancestry.com Inc. (Nasdaq: ACOM) announced today it has entered into a definitive agreement to acquire
Archives.com, a family history website, for approximately $100 million in cash and assumed liabilities.
This transaction will enable
Ancestry.com to add a differentiated service targeted to a complementary segment of the growing family history category. In addition,
Ancestry.com will welcome a team of talented engineers, digital marketers, and family history innovators into the
Ancestry.com fold and also gain access to a proprietary technology platform that has supported Archives.com’s rapid growth.
Archives.com
is owned and operated by Inflection LLC, a Silicon Valley-based
technology company. Since Archives.com’s launch in January 2010, the
site has rapidly grown to more than 380,000 paying subscribers who pay
approximately $39.95 a year.
Archives.com
offers access to over 2.1 billion historical records, including birth
records, obituaries, immigration and passenger lists, historical
newspapers, and U.S. and U.K. Censuses.
“
Archives.com
has built a fantastic and fast-growing business that we think is highly
complementary to Ancestry.com’s online family history offering,” said
Tim Sullivan, President and Chief Executive Officer of Ancestry.com. “We
love their focus on making family history simple and affordable, and we
are excited to help the talented
Archives.com team continue to grow alongside
Ancestry.com,
Fold3.com, and Family Tree Maker.”
“Family
history remains a dynamic and growing online category,” added Sullivan.
“Archives.com’s focus is consistent with our mission to help everyone
discover, preserve and share their family history, which will help
continue our efforts in delivering amazing discoveries to an even
broader audience.”
Over the past two years,
Archives.com has partnered with multiple well-known family history organizations that have helped build out
Archives.com robust collection of family history records. Most recently,
Archives.com partnered with the U.S. National Archives to provide free digital access to the recently released 1940 U.S. Federal Census.
“We are proud of the experience we’ve built with
Archives.com and believe strongly in its future potential,” said Matthew Monahan, CEO and Co-Founder of Inflection. “Combining with
Ancestry.com positions
Archives.com
to best capitalize on that potential, pairing complementary visions of
the marketplace and the opportunity. We’ve long admired Ancestry.com’s
content and technology and the innovations that the Ancestry.com team
continues to bring to market. We’re excited to see how this transaction
expands the reach of family history to an even larger audience.”
Upon
completion of the transaction, which is subject to customary closing
conditions, including expiration of the HSR waiting period,
Ancestry.com will continue to operate
Archives.com
separately retaining its brand and website. Multiple Inflection
employees, including key product and engineering executives are expected
to join the Ancestry.com team.
About Ancestry.com
Ancestry.com
Inc. (Nasdaq: ACOM) is the world's largest online family history
resource, with more than 1.8 million paying subscribers. More than 9
billion records have been added to the site in the past 15 years.
Ancestry users have created more than 34 million family trees containing
approximately 4 billion profiles. In addition to its flagship site,
Ancestry.com offers several localized Web sites designed to empower people to discover, preserve and share their family history.
About Archives.com
Archives.com
is a leading family history website that makes discovering family
history simple and affordable. The company has assembled more than 2.1
billion historical records all in a single location. Archives also
partners with other leading family history websites to provide a
comprehensive resource for researching your family history. Archives.com
is free to try for seven days, allowing anyone to explore the benefits
of membership without risk or obligation. For more information and to
start discovering your family history, please visit
http://www.archives.com/.
About Inflection
Inflection
is a Big Data and e-commerce startup headquartered in the heart of
Silicon Valley. Leveraging its proprietary technology platform, the
company has built innovative data services like Archives.com,
PeopleSmart.com, and
Identity.com. Inflection was founded in 2006 and is backed by tier-one venture capitalists Matrix Partners and Sutter Hill Ventures.
Forward-looking Statements
This
press release contains forward-looking statements. These statements
relate to future events or to future financial performance and involve
known and unknown risks, uncertainties, and other factors that may cause
our actual results, levels of activity, performance, or achievements to
be materially different from those anticipated in these forward-looking
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of these terms or other comparable terminology. These statements include
statements concerning among other things, the proposed transaction
between
Ancestry.com and
Archives.com, including the consummation and
anticipated timing of the transaction as well as the expected benefits
of the proposed transaction, and the effects of the proposed transaction
on
Ancestry.com, our subscriber base or reach. These forward-looking
statements are based on information available to us as of the date of
this press release. Forward-looking statements involve a number of risks
and uncertainties that could cause actual results to differ materially
from those anticipated by these forward-looking statements. Such risks
and uncertainties include a variety of factors, some of which are beyond
our control. In particular, such risks and uncertainties include the
risk that the transaction does not close when anticipated, or at all;
difficulties encountered in integrating acquired businesses and
retaining customers, and the additional difficulty of integration when
continuing the acquired operation; the adverse impact of competitive
product announcements; failure to achieve anticipated revenues and
operating performance; changes in overall economic conditions; the loss
of key employees; competitors’ actions; pricing and gross margin
pressures; inability to control costs and expenses; and significant
litigation.
Information concerning additional factors
that could cause results to differ materially from those projected in
the forward-looking statements is contained under the caption "Risk
Factors" in our Annual Report on Form 10-K for the year ended December
31, 2011, and in discussions in other of our SEC filings. These
forward-looking statements should not be relied upon as representing our
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update or revise these forward-looking statements for any reason,
whether as a result of new information, future events, or otherwise.