Care.com, an online destination for finding and managing family care, has acquired Citrus Lane, a social commerce platform designed for mothers. The acquisition has been completed for consideration of $22.9 million cash and $8.1 million in equity at close. The agreement also provides for up to an additional $17.6 million in earn out payments of cash and equity over the next two years subject to Citrus Lane’s achievement of certain milestones in 2015 and 2016.
Based in Mountain View, CA, Citrus Lane is a subscription-based social commerce service selling curated products to families on a monthly basis. The company sources and reviews every product it recommends, while also encouraging parents to share information on their favourite product discoveries.
Citrus Lane currently has more than 400,000 members, of which 45,000 are paying subscribers. The company had revenue of approximately $6 million in 2013, representing more than 300% growth over 2012. Care.com anticipates that revenues for Citrus Lane will double in 2014. On average, members engage with Citrus Lane more than five times a month; more than 2,000,000 member-generated product votes have been posted; and more than half of all orders are placed via mobile devices.
In making the announcement, Care.com Founder and CEO Sheila Lirio Marcelo said, “Care.com’s mission is to be there for families, providing the best care solutions, services, advice and support. 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. Both companies have an overwhelmingly female membership so by adding this new dimension to our business, we’ll be helping moms in a new way, engaging with them on an even more frequent basis, and building on our robust mom-community.”
Ms. Marcelo continued, “Building community and content are significant areas of focus for us. The addition of social commerce capabilities is a natural extension of our marketplace and a progression towards becoming the one-stop-shop for everything families need. The talented team Mauria has built in Mountain View, California will play a key part in helping us innovate and grow our family-focused platforms.”
Mauria Finley, Founder and CEO of Citrus Lane will become SVP, GM of Citrus Lane and will continue to run Citrus Lane, which is now a wholly-owned subsidiary of Care.com.
USA, Waltham, MA & Mountain View, CA
You must be logged in to post a comment.