What happened

Shares of Care.com (NYSE:CRCM) have jumped today, up by 13% as of noon EST, after IAC/InterActiveCorp (NASDAQ:IAC) announced a deal to acquire the company for $500 million. IAC also intends to install a longtime exec as Care.com CEO.

So what

IAC plans to kick off a tender offer at $15 per share for the family care marketplace in an all-cash transaction, representing a 34% premium over the "unaffected" closing price on Oct. 25, which is when news leaked that Care.com was looking for a buyer. Care.com's tech platform has matched 1.5 million families with caregivers since its inception, with 374,000 paying customers as of the third quarter.

Caregiver taking care of a patient

Image source: Getty Images.

In a statement, IAC CEO Joey Levin said:

Family care is exciting new territory for us -- and an accelerating market as demand for both child and senior care intensifies worldwide. The Care.com team has built a trusted brand and marketplace for families all over the world. We like marketplace businesses and this is one in a category we think has incredible potential.

Separately, IAC also announced yesterday that it would divest its majority ownership of Match Group.

Now what

IAC will appoint Tim Allen as Care.com CEO, succeeding current CEO Sheila Marcelo, once the deal closes. Marcelo said the deal will help Care.com scale and is looking forward to working with Allen to "deliver value to all our stakeholders." Marcelo has entered into agreements to tender her shares as part of the offer; she holds approximately 8.3% of all outstanding shares, according to Care.com's most recent proxy statement.

In order for the deal to close, IAC will need to obtain majority voting power through the tender offer. The companies expect the transaction to close in the first quarter of 2020.