Why Online Pet Care Marketplace Rover's Shares Are Skyrocketing Today

Online pet care marketplace Rover Group, Inc. (NASDAQ:ROVR) has agreed to be acquired by private equity funds managed by Blackstone Inc. (NYSE:BX) in a deal valued at approximately $2.3 billion.

Rover stockholders are set to receive $11.00 per share, marking a 61% premium over the volume weighted average share price of the last 90 trading days as of November 28, 2023.

Tushar Gupta, a Principal at Blackstone, commented, "We believe Rover has a significant runway for growth as pet owners increasingly place a premium on high-quality care, flexibility and convenience."

The platform has facilitated over 93 million services, connecting millions of pet parents with pet care providers in North America and Europe.

The merger agreement includes a 30-day "go-shop" period, allowing Rover to explore alternative proposals.

The transaction is expected to close in 1Q24, after which Rover will become a privately held company, continuing to operate under its existing brand.

Price Action: ROVR shares are trading higher by 28.8% at $10.95 and BX by 3.00% at $110.87 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was Reviewed And Published By Benzinga Editors.