LOV anticipated to end up being the Meet GroupвЂ™s Single Most Trafficked App
- Acquisition Projected to b st The Meet GroupвЂ™s readers to significantly more than 15 Million Cellphone Monthly Active Users
- Likely to Diversify The Meet GroupвЂ™s Cellphone Revenue, A Lot More Than Doubling Overseas, Subscription, and In-App Buying Income
- Likely to be Accretive to earnings that are non-GAAP Share in 2018 and past
- Funded with current money and a growth regarding the CompanyвЂ™s Existing Debt Facility
brand new HOPE, Pa.вЂ“(BUSINESS WIRE)вЂ“ The Meet Group, Inc. (NASDAQ MEET), a general public market frontrunner into the mobile conference area, today announced it’s performed a definitive contract to obtain LOV , a social dating app, for $70 million in cash, inclusive of the $5 million contingent earn-out. This purchase furthers The Meet GroupвЂ™s technique to innovate, get, and build the greatest portfolio that is mobile of for fulfilling brand new individuals. The LOV acquisition is anticipated to grow The Meet GroupвЂ™s international f tprint, b st the companyвЂ™s scale and profitability, and diversify its business design with the addition of expertise in membership and purchasing that is in-app.
This Smart Information Launch features multimedia. View the release that is full
LOV is just a social and technology that is mobile situated in Germany
- The 1 Dating App in German speaking countries (Germany, Switzerland and Austria) with regards to of software store packages. Top 3 in Southern Europe (Italy, Spain and France)
- Trailing twelve-month revenue of в‚¬27.2 million or $32.4 million predicated on present change rates
- Diversified income streams Subscriptions 48%; In-app Purchases 24%; Ads 28per cent
- Likely to express The Meet GroupвЂ™s biggest app that is single regards to traffic
- Roughly 5 million month-to-month active users (MAU) and 1.9 million day-to-day active users (DAU)
Key shows for the anticipated scale regarding the Meet Group plus LOV consist of
- Projected mobile phone MAU of 15.8 million, a rise of 48% through the Meet GroupвЂ™s 10.7 million average in Q2 2017
- Projected Cellphone DAU of 4.6 million, a growth of 71% through the Meet GroupвЂ™s 2.7 million average in Q2 2017
- Projected Cellphone chats delivered per day’s 74.6 million, a rise of 19.9per cent through the Meet GroupвЂ™s 62.2 million average in Q2 2017
- Projected Cellphone new users per day’s 193,000, a rise of 32% from The Meet GroupвЂ™s 146,000 a day average in Q2 2017
Financial effect of purchase
- Anticipated to offer notably increased scale in individual base and profits
- Likely to diversify the CompanyвЂ™s revenue mix, increasing worldwide mobile revenue by 169% and increasing mobile non-advertising income by 168% in Q2 on pro-forma combined foundation
- Expect purchase to be accretive to your CompanyвЂ™s non-GAAP EPS in 2018 and past
- Expect transaction become financed with current money readily available and a non-dilutive enhance to $80 million for the CompanyвЂ™s existing financial obligation center, with JPMorgan Chase Bank, N.A. and Silicon Valley Bank acting as co-lead agents
Geoff C k, CEO for the Meet Group, stated, вЂњWe have become excited to grow our f tprint that is global and LOV to your profile of apps. LOV is our 3rd strategic purchase in the final year and certainly will express our biggest solitary software with regards to traffic. We have been dedicated to accelerating development across our profile of brands through innovating our livestreaming video clip product and sharing best practices in monetization and engagement throughout the profile.вЂќ
The business expects that LOV will stay a split brand name and standalone mobile application following the closing for the purchase, and that LOV вЂ™s head office will stay in Dresden, Germany. The organization has extended proposes to each of LOV вЂ™s 97 time that is full. LOV вЂ™s Co-Founder and CEO Benjamin Bak has consented to help with the change for six months after closing. Effective upon shutting, Florian Braunschweig, present C and Co-Founder, has decided to take control leadership of LOV given that new General Manager and Managing Director. All of those other LOV administration group is anticipated to stay in position.
David Clark, Chief Financial Officer of this Meet Group, included, вЂњWe anticipate the purchase to shut in October 2017, become accretive to non-GAAP EPS also to create extra free cashflow for The Meet Group in 2018 and past. This acquisition is expected to assist further diversify our income streams with 48% of LOV вЂ™s income coming from subscriptions and 24% from in-app purchasing.вЂќ
Morgan, Lewis & Bockius LLP is serving as a lawyer to your Meet Group.
Webcast and Conference Call Details
Management will host a webcast and seminar call today, September 20, 2017 at 11 00 a.m. Eastern time for you to talk about the purchase. To gain access to the phone call dial (US and Canada) ( beyond your united states of america and Canada) so when prompted supply the participant passcode to your operator. In addition, a webcast of this seminar call is likely to be available go on the Investor Relations part of the CompanyвЂ™s web site at and a replay of this webcast are going to be view it readily available for 3 months.