Care.com, (that company with the commercial that features a little girl who talks about what kind of babysitter she wants) just got a huge investment.
Google is now the company’s largest investor after it purchased a $46.4 million stake in the company. This is equal to 17% of the website’s market value.
Shares of Care.com went flying in extended trading shortly after. The stock ran from $1.53 to $10 shortly after the news.
Google has been a Care.com customer since 2011, providing family care services to its employees, according to the press release.
Under the agreement, Google Capital purchased a new series of convertible preferred stock at an initial conversion price of $10.50, a 21 percent premium to the 30-day average as of June 27. The stock includes a 5.5 percent annual dividend.
Care.com (CRCM) provides a marketplace that connects caregivers with families. The site claims to serve 11 million families in 16 countries.
Disclaimer: We have no position in Alphabet Inc Class A (NASDAQ: GOOGL) or Care.com (NYSE: CRCM) and have not been compensated for this article.