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IAC Dumps Care.com—Why Private Equity Is Pouncing Now!

IAC said on March 2, 2026 that it agreed to sell Care.com to private-equity firm Pacific Avenue Capital Partners for about $320 million, with closing expected in the first half of 2026. The announced price point matters because IAC bought Care.com for $500 million in 2020, setting an unmistakable benchmark for what management is willing to accept to “sharpen” focus elsewhere. On the most recent earnings call in this conversation, executives framed Care.com as a business that had been working through a soft patch—particularly in Enterprise—yet still produced strong profitability, reporting $19 million of adjusted EBITDA in the fourth quarter at a 22% margin while expecting consumer and total revenue to return to growth by midyear. In parallel, IAC reiterated a broader simplification agenda, emphasizing strategic focus on People Inc. and its MGM stake, and monetizing non-core holdings to enhance financial flexibility.