IAC Sells Care.com to Pacific Avenue Capital Partners for $320 Million, Streamlining Portfolio
- IAC sells Care.com to Pacific Avenue Capital Partners for $320 million, streamlining its portfolio.
- The sale reflects IAC's focus on core businesses, particularly People Inc. and MGM.
- Care.com aims for growth under new ownership while leveraging partnerships established during IAC's tenure.
IAC Streamlines Its Portfolio with Care.com Sale to Pacific Avenue Capital Partners
IAC has finalized a definitive agreement to sell Care.com, its subsidiary in the family care marketplace, to an affiliate of Pacific Avenue Capital Partners for approximately $320 million in an all-cash transaction. This strategic move aligns with IAC's ongoing efforts to streamline its portfolio and pivot towards its core businesses, specifically People Inc. and its stake in MGM. The deal, projected to close in the first half of 2026, reflects IAC's focus on optimizing its operations and positioning for sustainable growth in its primary sectors.
Acquired by IAC in 2020, Care.com has quickly established itself as a leader in the $400 billion family care industry, boasting a robust network of background-checked caregivers and partnerships with over 700 employers. During IAC's ownership, significant enhancements were implemented at Care.com, including a comprehensive brand renewal and technology overhauls that have expanded its offerings across various domains of care, such as senior care, pet care, and housekeeping. This evolution not only positions the platform as a trusted resource for families, but it also emphasizes the importance of technology in modern caregiving solutions.
The acquisition is seen positively by both parties involved. Chris Sznewajs from Pacific Avenue Capital Partners praises Care.com's established market position and leadership, highlighting the firm's successful experience in corporate carve-outs. He articulates a commitment to unlocking the full potential of Care.com. Meanwhile, Care.com’s CEO, Brad Wilson, expresses enthusiasm about the new partnership, noting that Pacific Avenue's resources will enhance the company’s growth trajectory and improve its enterprise offerings. This transition sets Care.com on a promising path as it aims to continue delivering value to families and caregivers while charting an independent course for future expansion.
In related developments, the strategic divestiture of Care.com indicates IAC's intention to solidify its focus on higher-value assets. The company's concentrated emphasis on People Inc. and MGM illustrates a deliberate strategy toward maintaining a leaner and more efficient portfolio. Additionally, the existing partnerships that Care.com has cultivated during IAC's ownership are expected to serve as a foundational pillar in its ongoing efforts to scale and adapt under new ownership. This sale marks a significant milestone in IAC’s evolution and sets the stage for opportunities in both IAC's continuing businesses and Care.com's independent growth.