Owners of the EHarmony on line service that is dating consented to purchase New Hope-based Meet Group, its smartphone dating apps, and video clip and marketing computer pc computer software, for $500 million, or $6.30 a share.
Meet Group, which has the MeetMe, Lovoo, Skout, Tagged and Growlr apps, amongst others, can be a U.S.-based supply of Munich, Germany-based NuComвЂ™s Parship Group, a вЂњmatchmaking platformвЂќ that owns the EHarmony, Parship and Elite Partner dating apps, to make вЂњa worldwide frontrunner when you look at the internet dating and social activity sector,вЂќ the firms stated in a declaration.
NuCom is really a venture that is joint by German activity business ProSiebenSat.1 Media SE вЂ” which has television channels and reality-video programs in central European countries вЂ” and brand New York-based private-equity investor General Atlantic.
“This deal is about development,вЂќ stated Meet Group leader and cofounder Geoff Cook. In place of cutting jobs, вЂњwe are continuing to engage.”
The business employs 337 global, including about 200 at its New Hope and Philadelphia workplaces. Cook will remain on to operate the combined team in coordination with Parship.
Together they usually have apps companion-seekers may use from their smart phones вЂњif youвЂ™re interested in somebody when it comes to week-end, or a discussion partner, or your better half,вЂќ Cook included. вЂњWe always thought in having a profile.вЂќ
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The purchase cost is вЂњa 25% premiumвЂќ to Meet GroupвЂ™s present share value, increase its expected 2020 sales, and ten times its expected profits ( maybe not counting economic expenses) — a rich cost, by recent news technology deal requirements, noted Austin Moldow, analyst at Cannacord Genuity Capital Markets in nyc.
The offer вЂњwill deliver specific and instant value to our investors,вЂќ Meet Group president Spencer Rhodes stated in a declaration.
Certainly, the purchase pricing is probably the most that the stock happens to be well worth because the business went general general public following a 2011 merger with all the Latin America-focused social-media network QuePasa вЂ” with the exception of the last hour of trading on Wednesday afternoon, once the price spiked significantly more than $1 to shut at $6.82 a share.
That has been after Reuters, citing unidentified sources, stated that the offer ended up being imminent at a high price of вЂњmore than $500 million.вЂќ Purchasers whom purchased at the utmost effective within the ensuing rush of trades face a loss in as much as 8 % if the deal goes through as planned, pending Meet Group shareholder approval and U.S. and German regulatory OKs.
Cook cofounded the organization initially called MyYearbook in 2003, utilising the student that is digital their siblings Catherine and David put up to satisfy other pupils at Montgomery Township senior school in Somerset County, nj-new jersey.
He stated that the private-equity backers can better fund expansion than Meet Group could by itself.
Cook has two million stocks, in line with the companyвЂ™s most shareholder that is recent declaration, worth over $12 million during the purchase price. Catherine heads the ongoing companyвЂ™s U.S. advertising, and David works on an agreement foundation.
Cook wouldnвЂ™t touch upon whether big investors had forced him to market, but noted that NuCom approached him about combining.
Incorporating Meet Group вЂњwill notably advance our aspiration to produce one of many leading international players in internet dating and interactive live video,вЂќ said Max Conze, leader at ProSiebenSat.1 Media SE. The combined businesses will relish greater share of the market within the German live-video apps that is smartphone, he stated in a declaration.
вЂњWe continue to combine our position when you look at the online-dating marketвЂќ with the addition of Meet GroupвЂ™s вЂњsocial entertainmentвЂќ to your EHarmony dating service as well as other brands, stated Tim Schiffers, leader associated with the Parship Group. “we have always been looking towards using the services of our brand brand paltalk profiles brand new peers to solidify our footprint this is certainly worldwide.
Philadelphia-based Morgan, Lewis & Bockius LLP additionally the Bank of America recommended Meet Group into the purchase.
Meet GroupвЂ™s Lovoo, Skout, Tagged and Growlr apps had been obtained since early investments by backers including Philadelphia-based First Round Capital.
The MeetMe application was created to help users “meet new people,вЂќ Lovoo targets Western Europe, Tagged is dedicated to African People in america, and Growlr is targeted on gay individuals.
First Round cofounder Josh Kopelman is president regarding the board of this Inquirer. a longtime first round partner, Chris Fralic, is really a Meet Group manager.
The business included Flash-based games plus the Lunch Money digital currency in 2008 in addition to Meebo instant-messaging system in ’09. It purchased Skout in 2016, and added If(we) additionally the German dating app Lovoo in 2017.
Meet Group has satellite workplaces in san francisco bay area, as well as in Dresden and Berlin, Germany.