Genetic research firm, Ancestry.com, is undergoing a management overhaul as Tim Sullivan has announced that he will be stepping down from the position of CEO. He also disclosed that the company will be delaying its first IPO. Sullivan will assume his new position as Chairman of the company in October, while current CFO Howard Hochhauser will become the interim CEO.
The company will begin searching for candidates from outside its ranks to fill the position. Until then, Hochhauser will have total control of the company’s operations.
In June, the company that operates family tree repositories announced it submitted documents that are part of the process of going public. Though no further details are available, Sullivan indicated this was the right move for the board. Ancestry.com attained 40% of its revenue in the second quarter, and is expected to achieve an annual revenue of $1 billion, a 30% growth rate.
Ancestry.com went public back in 2009 under the name ACOM, with a $100 million IPO. Subsequently, through a private equity acquisition worth $1.6 billion, the company was privatized in the year 2012. ACOM was valued at $2.6 billion in 2016 after that year’s fundraising round.
Since then, the company has grown exponentially, and its employee count has doubled. They face tough competition now with many other players including Color Genomics and 23andMe making inroads in mainstream genetics technology. To date, however, the subscriber growth rate of Ancestry.com is still far ahead of its competitors.