Ahead of the Bell: Ancestry.com downgraded
NEW YORK (AP) — An analyst lowered his rating for Ancestry.com on Tuesday due to its proposed acquisition.
The genealogy website announced in October that it agreed to be purchased by a group led by European private equity firm Permira Funds in a cash deal valued at about $1.6 billion. The group plans to pay $32 per share. The deal is expected to close early next year.
Youssef Squali of Cantor Fitzgerald cut Ancestry.com to "Hold" from "Buy."
The analyst said in a client note that the offer of $32 per share seems a bit low and pointed out that no competing offers have come forward.
"We recommend that investors focus on more compelling opportunities in the Internet space," Squali wrote.
Shares of the Provo, Utah company closed Monday at $31.58.
