A group of investors led by U.S. private equity firm Apollo Global Management LLC and Ontario Teachers’ Pension Plan will buy a majority stake in job portal CareerBuilder LLC, the firms said on Monday.
Chicago-based CareerBuilder is owned by Tribune Media Co, TV station operator Tegna Inc and newspaper group McClatchy Co. These current owners will all retain a minority stake, Apollo said.
Apollo did not disclose financial details of the deal.
Reuters reported last month that Apollo was negotiating a deal that would value CareerBuilder at more than US$500 million, including debt.
The deal comes at a time when many popular job websites have become acquisition targets as they struggle to translate user growth into profits.
CareerBuilder’s owners have been looking to cash out from what they regard as a non-core business.
Tribune, which holds a 32 percent stake in CareerBuilder, said it expects to receive US$157 million in cash and retain an 8 percent stake in the sale. Tegna, with a 53 percent stake, said it expects to receive about US$250 million in proceeds and keep a 12.5 percent stake.
The investors expect the sale to close in the third quarter of 2017.
(Reporting by Rishika Sadam in Bengaluru; Editing by Sai Sachin Ravikumar)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of CareerBuilder LLC