Care.com Scoops Up Kid-Centric Subscription Service Citrus Lane for More Than $30 Million
Childcare marketplace service Care.com said Thursday that it had acquired Citrus Lane, an e-commerce subscription service that provides products to families with kids.
Care.com is paying $31 million in cash and stock, with a potential earn-out of $17.6 million over the next two years, depending on how the business grows.
Mountain View, Calif.-based Citrus Lane is small but fast-growing, generating just over $1 million in revenue in 2012 and $5.8 million last year; it is projected to double sales this year, Care.com said. The company has about 45,000 paying subscribers who receive a monthly box of age-appropriate goods.
Care.com has been working to expand beyond its core business of matching caregivers and families. The company acquired a payments service that helps families and household workers properly file taxes and has also moved into pet care, senior care and household tasks.
“It’s always been my dream and vision to create a trusted platform,” CEO Sheila Lirio Marcelo said in a meeting with reporters. “If you look at a lot of previous mommy destinations, they have struggled with monetization.”