Care.com (CRCM), an online marketplace for caregivers, received a boost from Google parent company Alphabet (GOOGL) with a $46 million dollar investment. The stock purchase reached by Google Capital, Alphabet’s growth equity fund, involved a new series of convertible preferred stock at $10.50 per share.
CRCM stock soared over $3.00, up over 35%, from $8.47 per share with the news in early trading.
Care.com CEO Sheila Marcelo explained her excitement with the news saying “This is a huge opportunity to take advantage of Google Capital’s strategic expertise and it gives us access to hundreds of experts at Google and Alphabet, with leadership and innovation.”
The Care.com purchase is Google Capital’s first investment in a public company since its founding in 2013. Care.com used some of the windfall to buy back 3.7 million common stock shares from Matrix Partners at $8.25 a share.
CRCM stock is currently trading at $11.79, up 38% or $3.14 a share, with volume approaching 1 million shares.