Tuesday, October 22, 2013

WhitePages Buys Out Investors

Seattle-based WhitePages revealed yesterday that it has bought out its existing, venture investors, paying $80M to buy its shares back from investors Technology Crossover Ventures and Providence Equity. The company said it used cash from profits, plus some debt, to accomplish the buyout. The two investors in WhitePages invested $45M in funding the company in 2005. The buyout is somewhat unusual--most investors would prefer an acquisition or IPO--but not unprecedented for a company, particularly if TCV and Providence Equity's limited partners were clamoring for an exit. Most venture capital funds are set up for a ten year lifespan, but in recent years have often seen those lifespans stretch beyond those ten year periods. Those extensions of a fund's life typically are looked upon poorly by those funds' limited partners. WhitePages operates an online people search and directory site.