Australian pet-care platform Mad Paws snapped up in $62m US deal

An Australian website that helps pet parents care for their fur babies is set to be acquired for $62 million by a publicly listed US company after a decade in business.

Mad Paws announced on Tuesday it was entering into a multimillion-dollar agreement with Seattle-based pet care provider Rover.

It’s proposed that Rover will acquire 100 per cent of Mad Paws’ shares on issue, worth $62 million.

Founded in 2015, Mad Paws connects more than 300,000 pet parents with 70,000 pet care providers, offering services including walking, day care, training and grooming.

The business capitalised on providing an alternative to traditional kennel services in Australia, CEO and co-founder Justus Hammer said.

“There wasn’t a good service for people with pets in the Australian market, other than kennels, so we saw that as an opportunity,” he told AAP.

“It really struck a chord with our customers.”

Rover’s acquisition would enable Mad Paws to accelerate its next stage of growth but it would not come at a cost to the consumer, Mr Hammer said.

“The intent is for us to continue to operate the business as is,” he said.

“I will continue to stay CEO of the business, so really we’re trying to improve everything that we’re doing at the moment under the same brand, with the same team.”

The deal also enables Rover, which already spans 16 countries, to enter the Australian pet market that’s worth an estimated $30 billion.

Australia represented a significant opportunity beyond North America and Europe, Rover CEO Brent Turner said.

“The Mad Paws team has done an impressive job scaling to become the leading pet care marketplace in Australia,” he said.

“We’re excited to join forces and help them accelerate the next phase of their journey.”

The deal is expected to close in the coming months following the approval of shareholders and the completion of certain requirements.

Before the sale can be completed, Mad Paws is required to sell its Pet Chemist business.

“That was simply because Rover is very much focused on the pet services business and bringing that forward,” he said.

The chemist had found a new home with opportunities to grow independently from Mad Paws, Mr Hammer said.

The online platform must also close its e-commerce businesses, SASH and Waggly.

Shares in Mad Paws soared 70 per cent on Tuesday to a more than two-year high of 13 cents.

If the scheme is implemented, shareholders will receive $0.14 a share.