IAC Inc. announced on March 2 2026 that it will sell its wholly‑owned subsidiary Care.com to an affiliate of Pacific Avenue Capital Partners in an all‑cash transaction valued at approximately $320 million. The deal is expected to close in the first half of 2026, with a contractual bar that it cannot close before March 13 2026.
The sale is part of IAC’s ongoing strategy to streamline its portfolio and concentrate on its core businesses, People Inc. and its stake in MGM Resorts International. By divesting Care.com, which IAC acquired in February 2020 for roughly $500 million enterprise value, the company aims to unlock value from a non‑core asset and strengthen its balance sheet for future growth initiatives.
Under IAC ownership, Care.com generated $347 million in revenue and $47 million in adjusted EBITDA in fiscal 2025, but the fourth quarter of 2025 saw an operating loss of $191 million driven by a $207 million goodwill impairment. The figures illustrate that while Care.com’s top line has grown, profitability has been challenged by one‑time charges and investment costs associated with platform upgrades and brand renewal.
Pacific Avenue Capital Partners, a private‑equity firm that specializes in middle‑market carve‑outs, has a track record of acquiring and improving market‑leading businesses. “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,” said Chris Sznewajs, founder and managing partner of Pacific Avenue.
IAC’s recent financial results provide context for the divestiture. In the fourth quarter of 2025, the company reported earnings per share of –$0.99 versus an estimate of $0.67, while revenue of $645.98 million slightly exceeded the $641.01 million consensus. Digital revenue grew 14% year‑over‑year, offsetting a decline in print revenue. Christopher Halpin, IAC’s executive vice president, COO and CFO, said, “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.”
The sale will free up capital that IAC can deploy toward its core businesses and potential new investments. For Care.com, the transition to Pacific Avenue’s ownership offers the opportunity to pursue growth initiatives with dedicated resources and a focus on operational excellence, potentially unlocking additional value for both parties.
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