New Hope-based site that is dating gets installed with German company for $500M

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 NuCom’s Parship Group, a “matchmaking platform” that owns the EHarmony, Parship and Elite Partner dating apps, to make “a worldwide frontrunner when you look at the internet dating and social activity sector,” the firms stated in a declaration.

NuCom is really a venture that is joint by German activity business ProSiebenSat.1 Media SE — which has television channels and reality-video programs in central European countries — and brand New York-based private-equity investor General Atlantic.

„This deal is about development,” stated Meet Group leader and cofounder Geoff Cook. In place of cutting jobs, “we 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 “if you’re interested in somebody when it comes to week-end, or a discussion partner, or your better half,” Cook included. “We always thought in having a profile.”

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The purchase cost is “a 25% premium” to Meet Group’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 “will deliver specific and instant value to our investors,” Meet Group president Spencer Rhodes stated in a declaration.

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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 — 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 “more than $500 million escort services in Rockford.” 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 company’s most shareholder that is recent declaration, worth over $12 million during the purchase price. Catherine heads the ongoing company’s U.S. advertising, and David works on an agreement foundation.

Cook wouldn’t touch upon whether big investors had forced him to market, but noted that NuCom approached him about combining.

Incorporating Meet Group “will notably advance our aspiration to produce one of many leading international players in internet dating and interactive live video,” 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.

“We continue to combine our position when you look at the online-dating market” with the addition of Meet Group’s “social entertainment” 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 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 Group’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,” 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.