NYC company finalizes acquisition of Sheila Marcelo’s Care.com
IAC and Care.com, the world’s largest online marketplace for finding and managing family care, announced on December 20 that the two companies have entered into a definitive agreement pursuant to which IAC will acquire Care.com for $15.00 per share in an all-cash transaction representing approximately $500 million of enterprise value.
With more than 1.5 million successful matches made since its inception and 374,000 paying families as of Q3 2019, Care.com – headquartered in Waltham, Mass. — is the leading global platform for matching families with caregivers in the rapidly growing but highly fragmented market for family care, sized in excess of $300 billion in the U.S. alone. With this acquisition, IAC will gain a foothold in a market new to the company. IAC will invest to accelerate Care.com’s growth across its core categories (child and senior care) with the opportunity to further extend its platform into adjacent areas, such as pet and home care.
“Family care is exciting new territory for us—and an accelerating market as demand for both child and senior care intensifies worldwide,” said Joey Levin, CEO, IAC. “The Care.com team has built a trusted brand and marketplace for families all over the world. We like marketplace businesses and this is one in a category we think has incredible potential.”
As part of the agreement, IAC and Care.com also announced plans to appoint long-time IAC executive Tim Allen to Chief Executive Officer of Care.com, effective upon closing. Allen succeeds founder, Chairwoman and CEO, Sheila Lirio Marcelo, who announced plans to transition from the CEO position earlier this year.
“I’m both thrilled and honored at the opportunity to lead Care.com at this very pivotal moment for the company,” said Allen. “Care.com is the go-to brand making it easier for millions of families to connect with affordable, accessible care – I’m excited to start its next chapter as an IAC company.”
Marcelo said, “Since our founding 13 years ago, we’ve delivered on our mission to help millions of people find affordable, high-quality care and caregivers find meaningful work. Now, we’re bringing together the world’s largest marketplace for care with the leader in scaling and growing marketplace businesses. We are excited to work with Tim and IAC’s leadership and believe this transaction will deliver value to all our stakeholders.”
Marcelo founded Care.com in 2006 after her personal challenges as a young working mother finding care for two small children and ailing parents shed a spotlight on the massive care needs of families everywhere.
Prior to founding Care.com, she was an Entrepreneur in Residence at Matrix Partners and held executive positions at Upromise, helping families save for college and at executive search engine TheLadders.com. She sits on the boards of Northwestern Mutual, Boston Children’s Hospital Board of Trustees, the U.S. Library of Congress Trust Fund, and the Philippine Development Foundation. She is a member of the Council on Foreign Relations and the Massachusetts Competitive Partnership and advises numerous start-up companies.
Marcelo graduated from Mount Holyoke College and received her J.D. and M.B.A. degrees from Harvard University.
IAC operates Vimeo and Dotdash, among many other companies, and also has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish, OkCupid and Hinge, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy. The company is headquartered in New York City and has business operations and satellite offices worldwide. Learn more at www.iac.com.
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