Care.Com Receives $46.4 Million Investment From Google Capital

By Ezequiel Minaya 

Care.com Inc. said Wednesday that it has received a $46.4 million investment from a growth-equity fund linked to Google parent company Alphabet Inc. and used the funds to buy back company shares.

The investment by Google Capital makes it the largest shareholder of Care.com., which is an online marketplace offering a range of services ranging from child, elder and pet care to housekeeping.

Shares of the company, up about 49% over the past 12 months, climbed 18% to $10 in after-hours trading. The company was valued about $275.9 million before the announcement, according to FactSet.

As part of the transaction, a partner at Google Capital, Laela Sturdy, will join Care.com's board. Under the deal's terms, Care.com has sold newly issued shares of preferred stock to Google Capital at an initial conversion price of $10.50 a share.

Dividends on the shares are slated to grow at 5.5% annually for the first seven years. Care.com said that it had repurchased 3.7 million shares of its common stock from Matrix Partners at a price of $8.25 a share using a portion of the proceeds from the Google Capital transaction.

Matrix previously owned some 15% of Care.com's shares outstanding.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

June 29, 2016 17:40 ET (21:40 GMT)

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