LONDON â€" A consortium led by the European private equity firm Permira has agreed to buy Ancestry.com for around $1.6 billion, according to a person with direct knowledge of the matter.
Under the terms of the deal, Permira and its partners will pay $32 a share for the genealogy Web Site, almost a 10 percent premium to the company's closing share price on Friday, the person added, who spoke on the condition of anonymity because he was not authorized to speak publicly.
The deal for Ancestry.com, which is based in Provo, Utah, is expected to be announced before the markets open in the United States on Monday.
Permira, which will retain majority control, is partnering with Spectrum Equity, a venture capitalist firm that is an early backer of Ancestry.com, and several of the European private equity firm's direct investors. The website's management also will invest in the deal.
The agreement comes three years after Ancestry.com raised $100 million throug h an initial public offering. The Web site, which allows individuals to trace their heritage, has customers in 15 countries worldwide, though the majority of its users are based in the U.S., Canada, Britain and Australia.
The deal would be a welcome reprieve for the genealogy website that has struggled since becoming a publicly-listed company.
After hitting a $45 high in 2011, its stock price has tumbled to around $29 on concerns that consumers are reducing their spending because of the economic crisis.
The company was started in the mid 1990's, and has remained profitable despite concerns about the revenue growth of other internet-related businesses. Last year, Ancestry.com's net profits roughly doubled, to $62.9 million, on revenues of $400 million. It has more than two million subscribers, who pay up to $34.95 a month to use the service.
Discussions about a potential sale have been ongoing since the summer, and other potential suitors have included TPG Capital and Providence Equity Partners.
A spokeswoman for Permira declined to comment. A representative for Ancestry.com was not immediately available for comment.
The news was earlier reported by the Wall Street Journal.
