Spectrum Equity Investors has led a $300 million investment to acquire a majority interest in Provo Utah-based The Generations Network (the parent company of Ancestry.com, MyFamily.com and other sites) according to a source with knowledge of the deal.
The Generations Network competes with a number of new Internet startups that we’ve recently covered. Its Ancestry.com site competes with Geni and MyHeritage. MyFamily.com competes with Story Of My Life, Our Story and others.
Geni’s last round of financing valued the company at $100 million. But none of those competing sites, or even all of those sites aggregated, have caused any financial pain yet for The Generations Network. The company is pulling in $150 million or so in yearly revenue and is hugely profitable according to our source.
This is a liquidity event for many or most of TGN’s shareholders, although it is apparently not a complete buyout. Employees and possibly some outside shareholders still have equity in the entity, which is almost certainly preparing for an IPO or other larger liquidity event.
The most recent Comscore data says TGN had 8.2 million unique worldwide visitors in August. They’ve raised $95 million to date, although the last round of financing was closed in 2001.
The company is not responding to requests for comment.