This week, The Meet Group Inc. (NASDAQ: MEET) announced it had executed a definitive agreement to acquire the social dating app LOVOO. The acquisition involves a cash transaction of $70 million inclusive of a $5 million contingent earn-out. The move allows The Meet Group to expand its footprint in the mobile market. The company expects LOVOO to expand its scale, profitability and diversify its business model.
LOVOO is a social and mobile tech company based out of Germany. LOVOO’s dating app is the number one dating app in German-speaking countries when considering app store downloads. During the trailing twelve months, LOVOO generated $32.4 million. The company boasts a diversified revenue stream with 28% from ads, 24% from in-app purchases and 48% from subscriptions. The app will provide The Meet Group with roughly 5 million monthly active users and 1.9 million daily active users.
The Meet Group believes that the acquisition will be accretive to its non-GAAP EPS in 2018 and beyond. The transaction is expected to be financed with existing cash as well as a non-dilutive increase to $80 million of the company’s existing debt facility.