Care.com that provides services for finding and managing family care resources like Babysitters and elder caregivers, has announced the acquisition of Citrus Lane, a social commerce platform designed for mothers and their children. The deal amount was USD 48.6 million of which USD 22.9 million is in cash, USD 8.1 million is in equity, and USD 17.6 million will be available in earn out payments of cash and equity over the next two years, if Citrus Lane achieves some certain business milestones.
Post this acquisition, Citrus Lane will become a subsidiary of Care.com, with Citrus Lane founder and CEO Mauria Finley becoming senior vice president of the company.
Citrus Lane was launched in 2006 as an online and mobile platform connecting moms with brands and advice they can trust. It offers an e-commerce offering, which enables subscribers to “add to box” each month, and community members and subscribers to buy “best of” products at citruslane.com. The company has, till date, raised two rounds of investment and has a total capital of USD 6.6 million. It is backed by two investors viz. GGV capital and Greylock Partners.
“At Citrus Lane, we share the same passion for and commitment to helping families as Care.com does, which is why we couldn’t be more excited about joining Sheila and team,” Finley said in a statement. “With the breadth and reach of Care.com, we’ll be able to connect with even more parents and children around the world.”
Tech Crunch says: The deal is a nice multiple on Citrus Lane’s annual revenue, which was $6 million in 2013, and is expected to double to $12 million this year. The three-year-old Citrus Lane, which has more than 400,000 members and 45,000 paying subscribers, has raised $6.6 million in venture capital from investors including Greylock and GGV Capital.
It’s a smart target for Care.com, as Citrus Lane is a strong company with a stellar team. As I wrote two years ago after interviewing Citrus Lane founder and CEO Mauria Finleyfor a TechCrunch article,
‘We have a really great technology and quant marketing teams, and we are building all sorts of algorithmic understanding that we’re confident will run circles around other companies in the space,’ Finley said. ‘But the secret and the heart of this is that we really believe in the customer, and we believe in the mission of helping moms find the right products for their kids.’”
Vator News says: Care.com CEO Sheila Marcelo pointed out, they both cater to a largely female audience, and moms in particular. But the connection goes deeper than that; the two companies share the same mission and values.
“Care.com’s mission is to be there for families, providing the best care solutions, services, advice and support,” she said. “Citrus Lane is a natural extension of that mission, providing the best products for families with children, and creating a social community in which moms can share.”
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