NEW YORK, N.Y. — March 2, 2026
Executive Summary
IAC (NASDAQ: IAC) has entered into a definitive agreement with an affiliate of Pacific Avenue Capital Partners under which the affiliate will acquire Care.com, a wholly owned subsidiary of IAC and one of the largest online marketplaces for family care and caregiving employment opportunities. The transaction provides for the purchase of all issued and outstanding shares of Care.com, Inc. in an all-cash deal with a gross purchase price of approximately $320 million. The transaction is expected to close in the first half of 2026, subject to customary closing conditions.
The agreement reflects IAC’s continued efforts to streamline its portfolio and focus its strategic resources on core holdings, while positioning Care.com to enter its next phase as an independent company under Pacific Avenue’s ownership. Pacific Avenue, a global private equity firm specializing in corporate carve-outs in the middle market, will oversee Care.com’s transition and future growth strategy following the completion of the transaction.
Announcement Overview
The definitive agreement between IAC and the Pacific Avenue affiliate outlines the acquisition of Care.com in a fully cash-based transaction valued at approximately $320 million on a gross basis. The structure provides for the transfer of 100% of the issued and outstanding shares of Care.com, Inc. capital stock, transitioning the business from IAC ownership to Pacific Avenue control upon closing.
The transaction is expected to be finalized during the first half of 2026, contingent upon customary regulatory approvals and other standard closing conditions. Upon completion, Care.com will operate as a standalone company backed by Pacific Avenue’s investment and operational framework.
IAC acquired Care.com in 2020. Since that time, Care.com has operated as a wholly owned subsidiary within IAC’s portfolio of digital and marketplace businesses. The divestiture aligns with IAC’s stated objective of concentrating capital and leadership attention on core holdings while monetizing non-core assets in a disciplined manner.
Key Announcement Details
- Announcement Type: Entry into a definitive agreement for the divestiture and acquisition of a wholly owned subsidiary
- Announcement Date: March 2, 2026
- Seller: IAC (NASDAQ: IAC)
- Buyer: Affiliate of Pacific Avenue Capital Partners
- Target Entity: Care.com, Inc., wholly owned subsidiary of IAC
- Nature of Transaction: Corporate carve-out within the middle market
- Transaction Structure: All-cash purchase of all issued and outstanding shares of Care.com, Inc. capital stock
- Equity Scope: 100% of issued and outstanding capital stock to be transferred
- Gross Purchase Consideration: Approximately $320 million in cash
- Form of Consideration: Cash payment at closing
- Expected Closing Window: First half of 2026
- Closing Conditions: Subject to customary closing conditions, including regulatory approvals and other standard contractual requirements
- Strategic Rationale – IAC:
- Streamline corporate portfolio
- Monetize non-core holdings
- Sharpen strategic focus on People Inc.
- Maintain focus on equity stake in MGM Resorts International
- Enhance financial flexibility
- Strategic Rationale – Pacific Avenue:
- Execute corporate carve-out acquisition strategy
- Acquire market-leading business
- Partner with existing leadership team
- Support standalone operational growth
- Care.com Market Position:
- One of the largest online marketplaces for family care and care employment
- Operates within an estimated $400 billion family care market
- Core Marketplace Functions:
- Connects families with caregivers
- Connects caregivers with employment opportunities
- Primary Service Verticals:
- Child care
- Senior care
- Pet care
- Housekeeping
- Caregiver Network Profile:
- Largest online network of background-checked child caregivers in the United States
- Largest online network of background-checked senior caregivers in the United States
- Enterprise Segment Scope:
- Partnerships with more than 700 employers
- Delivery of care solutions to employees through employer-sponsored programs
- Acquisition History:
- Care.com acquired by IAC in 2020
- Operational Initiatives Under IAC Ownership:
- Brand renewal
- Technology overhaul
- Product transformation across Consumer segment
- Product transformation across Enterprise segment
- Expansion into high-demand verticals
- Strengthening of trust and safety protocols
- Platform infrastructure modernization
- Profitability Positioning at Announcement:
- Described as entering next chapter from a position of profitability and operational strength
- Post-Transaction Positioning:
- Care.com to operate as an independent, standalone company
- Pacific Avenue to oversee next phase of ownership
- Existing leadership team to continue operations
- Seller Financial Advisor: J.P. Morgan Securities LLC (exclusive)
- Seller Legal Counsel: Latham & Watkins LLP
- Buyer Financial Advisor: Moelis & Company LLC (exclusive)
- Buyer Legal Advisor: Weil, Gotshal & Manges LLP
- Forward-Looking Statement Framework:
- Issued pursuant to the Private Securities Litigation Reform Act of 1995
- References anticipated timing and completion
- References expected strategic and financial considerations
- Notes potential operational, market, regulatory, technology, and competitive risks
- SEC Filing References:
- IAC Annual Report on Form 10-K filed February 19, 2026
- Subsequent reports filed with the U.S. Securities and Exchange Commission
- Headquarters – Seller: New York City
- Corporate Address – IAC: 555 West 18th Street, New York, NY 10011
- Investor Relations Contact: Mark Schneider
- Corporate Communications Contact: Valerie Combs
Background on Care.com’s Platform and Market Position
Founded as an online marketplace connecting families with caregivers, Care.com has grown into one of the largest platforms in the United States dedicated to family care services. The company operates within a market estimated at approximately $400 billion in annual spending across child care, senior care, pet care, and household services.
Care.com maintains what the company describes as the largest online network of background-checked child and senior caregivers in the United States. Its platform facilitates connections between families seeking care services and individuals offering caregiving support, as well as between caregivers and care-related employment opportunities.
In addition to its consumer-facing marketplace, Care.com has developed enterprise offerings that serve employers. The company reports partnerships with more than 700 employers that provide care solutions to their workforce through Care.com’s platform. These enterprise partnerships are designed to extend caregiving support as an employee benefit.
During its ownership under IAC, Care.com renewed its brand identity, overhauled its core technology infrastructure, and redesigned its product experience across both consumer and enterprise segments. The company also expanded into high-demand verticals including senior care, pet care, and housekeeping, while implementing enhanced trust and safety measures across its platform.
Strategic Context of the Transaction
According to IAC, the sale of Care.com is part of a broader portfolio simplification strategy. The company has stated its intent to sharpen its strategic focus on People Inc. and its equity stake in MGM Resorts International, while monetizing non-core assets to enhance financial flexibility.
IAC has historically pursued a model of building, acquiring, scaling, and in certain cases separating or divesting businesses as they mature. Since its formation nearly three decades ago, IAC has incubated and developed multiple independent publicly traded companies. The divestiture of Care.com is positioned within this broader framework of financially disciplined capital allocation.
Pacific Avenue Capital Partners specializes in corporate carve-outs within the middle market. Its strategy typically involves acquiring divisions or subsidiaries from larger parent companies and supporting their transition into independent operating entities. The firm’s focus includes partnering with existing leadership teams to refine operational performance and support long-term growth initiatives.
Under Pacific Avenue ownership, Care.com is expected to continue operating as a leading marketplace platform in family care services, with a stated emphasis on scaling enterprise offerings and advancing platform capabilities.
Leadership Perspectives
Christopher Halpin, Executive Vice President, Chief Operating Officer and Chief Financial Officer of IAC, stated:
“We’ve been clear on our plan to sharpen IAC’s strategic focus on People Inc. and our MGM stake, while opportunistically monetizing non-core holdings to simplify our portfolio and enhance financial flexibility.”
Chris Sznewajs, Founder and Managing Partner of Pacific Avenue Capital Partners, stated:
“Care.com is an industry leader with a brand built on trust, a strong reputation, and a proven leadership team. Care.com has a clear path for growth as an independent, standalone company. This transaction aligns perfectly with Pacific Avenue’s track record of executing corporate carve-outs to acquire market-leading businesses and partnering with leadership teams to elevate performance. We’re excited to work with Brad, Michelle, and the Care.com team to unlock the company’s full potential in serving families, caregivers, and its enterprise partners.”
Brad Wilson, Chief Executive Officer of Care.com, stated:
“Care.com is entering its next chapter from a strong position of profitability and strength, and we’re excited to partner with Pacific Avenue to accelerate this momentum. Their dedicated investment and operating expertise will allow us to move faster — particularly in scaling our enterprise offerings — while continuing to invest deeply in our platform and deliver even greater value to families and caregivers.”
Advisory Roles in the Transaction
The transaction was supported by established financial and legal advisors on both sides, reflecting its structure as a negotiated corporate carve-out.
J.P. Morgan Securities LLC served as exclusive financial advisor to IAC in connection with the divestiture of Care.com. In this role, J.P. Morgan advised on transaction structure, valuation considerations, and overall process management. Latham & Watkins LLP acted as legal counsel to IAC, advising on transaction documentation, regulatory considerations, representations and warranties, and customary closing mechanics associated with the sale of a wholly owned subsidiary.
On the buyer side, Weil, Gotshal & Manges LLP served as legal advisor to Pacific Avenue Capital Partners. The firm provided counsel on transaction structuring, acquisition documentation, and carve-out-related legal matters. Moelis & Company LLC acted as exclusive financial advisor to Pacific Avenue in connection with the acquisition, advising on valuation, negotiation, and transaction execution.
The participation of experienced financial and legal advisors underscores the formal and structured nature of the agreement, particularly given its positioning as a middle-market corporate carve-out involving the transfer of full ownership of a previously wholly owned subsidiary.
Transaction Conditions and Forward-Looking Statements
The completion of the transaction remains subject to customary closing conditions. These typically include required regulatory approvals, satisfaction of agreed representations and warranties, and other standard conditions precedent applicable to transactions of this nature. The parties have indicated that the closing is expected to occur in the first half of 2026, subject to the fulfillment of these requirements.
In connection with the announcement, IAC included forward-looking statement disclosures pursuant to the Private Securities Litigation Reform Act of 1995. These statements address, among other matters, the anticipated timing and completion of the transaction, as well as the expected strategic and financial considerations associated with the divestiture.
The forward-looking statements also reference a range of business, operational, market, and regulatory risks that could cause actual results to differ materially from current expectations. These risks are described in IAC’s filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent reports. IAC stated that it undertakes no obligation to update forward-looking statements except as required by law.rategic advantages, and expected benefits of the transaction, as well as references to potential business and market risks described in IAC’s filings with the U.S. Securities and Exchange Commission.
About IAC
IAC builds, acquires, and invests in companies operating across digital media, online marketplaces, publishing, and service-oriented platforms. Since its formation nearly three decades ago, IAC has functioned as both an operating company and a capital allocator, developing businesses from early stages through scale and, in multiple instances, supporting their transition into independent publicly traded enterprises.
The company’s operating model centers on identifying category-focused platforms with long-term structural growth characteristics, investing in product development and leadership infrastructure, and allocating capital in accordance with a disciplined, opportunity-driven framework. Over time, IAC has incubated and separated a number of businesses that now operate independently, reflecting its long-standing approach of building enterprises within its portfolio before positioning them for standalone operation.
IAC’s current portfolio includes category-leading businesses such as People Inc. and Care.com, alongside additional operating assets. The company also maintains strategic equity positions in MGM Resorts International and Turo, providing exposure to hospitality and mobility-related sectors through minority ownership stakes.
Headquartered in New York City, IAC continues to operate as a diversified holding company with an emphasis on disciplined capital deployment, portfolio optimization, and long-term enterprise development.
Media Contact
For additional information, visit pacificavenuecapital.com & iac.com.
Source Attribution
Source: Company announcement