Mad Paws, a pet services provider, has agreed to a takeover by US-based Rover Group in a deal valued at around $62 million. The planned acquisition will see Rover obtain complete ownership of Mad Paws through a scheme of arrangement, with each Mad Paws shareholder receiving $0.14 per share in cash. This offer reflects an 87% premium on the closing price of Mad Paws shares as of Monday. The deal puts the transaction equity value at $62 million.
Rover Group’s interest lies solely in the online marketplace business of Mad Paws, and does not include its associated brands, namely the online pet pharmacy Pet Chemist, pet treat enterprise Waggly, and e-commerce brand Sash. Consequently, Mad Paws has agreed to sell its Pet Chemist division to VetPartners Australia for approximately $13 million and terminate the operations of Sash and Waggly. Upon finalization of the Pet Chemist sale, Howard Humphreys will step down from his role as an executive director of Mad Paws.
The CEO, executive director, and co-founder of Mad Paws Group, Justus Hammer, expressed his enthusiasm for the impending partnership with Rover. He stated that the company takes pride in the community of pet enthusiasts it has built over the last decade, and looks forward to leveraging Rover’s expertise to continue advancing towards their shared objective.
Mad Paws, which was established in 2014, operates a pet care marketplace that enables users to find and offer pet sitting, hosting, walking, training, and grooming services. Even after the acquisition, the company plans to continue to function independently, retaining its own brand identity and Sydney-based operations under Hammer’s leadership.
The completion of the deal is subject to various customary conditions, including approval from shareholders, the court, and the Foreign Investment Review Board (FIRB).
Rover, founded in 2011 and stationed in Seattle, runs an online marketplace for pet care, with a presence in 16 countries across North America and Europe.
What is the valuation of the Mad Paws acquisition by Rover Group?
The deal is valued at approximately $62 million.
What happens to Mad Paws’ associated brands after the acquisition?
Mad Paws’ Pet Chemist division will be sold to VetPartners Australia and the operations of Sash and Waggly will be terminated.
What is the future of Mad Paws following the acquisition?
Post-acquisition, Mad Paws plans to continue operating independently, maintaining its brand identity and base in Sydney under the leadership of Justus Hammer.
