The Meet Group to Acquire LOVOO

NEW HOPE, Pa.–()–The Meet Group, Inc. (NASDAQ:MEET), a public market chief within the cell assembly house, in the present day introduced it has executed a definitive settlement to purchase LOVOO, a social courting app, for $70 million in money, inclusive of a $5 million contingent earn-out. This acquisition furthers The Meet Group’s technique to innovate, purchase, and construct the most important cell portfolio of manufacturers for assembly new individuals. The LOVOO acquisition is predicted to increase The Meet Group’s world footprint, improve the corporate’s scale and profitability, and diversify its enterprise mannequin by including experience in subscription and in-app buying.

LOVOO is a social and cell know-how firm primarily based in Germany:

  • The #1 Dating App in German talking nations (Germany, Switzerland and Austria) when it comes to app retailer downloads. Top three in Southern Europe (Italy, Spain and France)
  • Trailing twelve-month income of €27.2 million or $32.four million primarily based on present trade charges
  • Diversified income streams: Subscriptions 48%; In-app Purchases 24%; Ads 28%
  • Expected to symbolize The Meet Group’s largest single app when it comes to visitors
    • Approximately 5 million month-to-month lively customers (MAU) and 1.9 million every day lively customers (DAU)
  • 47,000 new world registrations per day
  • 97 Full-time workers – Dresden and Berlin

Key highlights of the anticipated scale of The Meet Group plus LOVOO embrace:

  • Projected Mobile MAU of 15.eight million, a rise of 48% from The Meet Group’s 10.7 million common in Q2 2017
  • Projected Mobile DAU of four.6 million, a rise of 71% from The Meet Group’s 2.7 million common in Q2 2017
  • Projected Mobile chats despatched per day of 74.6 million, a rise of 19.9% from The Meet Group’s 62.2 million common in Q2 2017
  • Projected Mobile new customers per day of 193,000, a rise of 32% from The Meet Group’s 146,000 per day common in Q2 2017

Financial impression of acquisition:

  • Expected to present considerably elevated scale in person base and revenues
  • Expected to diversify the Company’s income combine, rising worldwide cell income by 169% and rising cell non-advertising income by 168% in Q2 on pro-forma mixed foundation
  • Expect acquisition to be accretive to the Company’s non-GAAP EPS in 2018 and past
  • Expect transaction to be financed with present money available and a non-dilutive improve to $80 million of the Company’s present debt facility, with JPMorgan Chase Bank, N.A. and Silicon Valley Bank appearing as co-lead brokers

Geoff Cook, CEO of The Meet Group, stated, “We are very excited to expand our global footprint and add LOVOO to our portfolio of apps. LOVOO is our third strategic acquisition in the last 12 months and will represent our largest single app in terms of traffic. We are focused on accelerating growth across our portfolio of brands through innovating our livestreaming video product and sharing best practices in monetization and engagement across the portfolio.”

The Company expects that LOVOO will stay a separate model and standalone cell utility following the closing of the acquisition, and that LOVOO’s headquarters will stay in Dresden, Germany. The Company has prolonged provides to all of LOVOO’s 97 full time workers. LOVOO’s Co-Founder and CEO Benjamin Bak has agreed to help with the transition for six months after closing. Effective upon closing, Florian Braunschweig, present COO and Co-Founder, has agreed to take over management of LOVOO as the brand new General Manager and Managing Director. The remainder of the LOVOO administration workforce is predicted to stay in place.

David Clark, Chief Financial Officer of The Meet Group, added, “We expect the acquisition to close in October 2017, to be accretive to non-GAAP EPS and to generate additional free cash flow for The Meet Group in 2018 and beyond. This acquisition is expected to help further diversify our revenue streams with 48% of LOVOO’s revenue coming from subscriptions and 24% from in-app purchasing.”

Morgan, Lewis & Bockius LLP is serving as authorized counsel to The Meet Group.

Webcast and Conference Call Details

Management will host a webcast and convention name in the present day, September 20, 2017 at 11:00 a.m. Eastern time to talk about the acquisition. To entry the decision dial 888-461-2021 (US and Canada) (+1 719-325-2111 outdoors the United States and Canada) and when prompted present the participant passcode 4996344 to the operator. In addition, a webcast of the convention name can be obtainable dwell on the Investor Relations part of the Company’s web site at www.themeetgroup.com and a replay of the webcast can be obtainable for 90 days.

About The Meet Group

The Meet Group (NASDAQ:MEET) is a fast-growing portfolio of cell apps designed to meet the common want for human connection. Using modern merchandise and complex knowledge science, The Meet Group retains its roughly 2.7 million cell every day lively customers engaged and originates untold numbers of informal chats, friendships, dates, and marriages. The Meet Group provides advertisers the chance to attain prospects on a worldwide scale with a whole lot of tens of millions of every day cell advert impressions. The Meet Group makes use of excessive person density, economies of scale, and main monetization methods with the aim of maximizing adjusted EBITDA. The Company’s apps – at the moment MeetMe®, Skout®, Tagged®, and Hi5® – let customers in additional than 100 nations chat, share photographs, stream dwell video, and talk about matters of curiosity, and can be found on iPhone, iPad, and Android in a number of languages. For extra info, please go to http://www.themeetgroup.com.

About LOVOO

Founded in 2012, LOVOO is a number one European courting app and the most important German-speaking courting app by downloads. The privately held firm relies in Dresden and Berlin, Germany, and is out there in 15 languages to its 1.9 million cell every day lively customers. LOVOO adjustments individuals’s lives by altering how they meet via modern location-based algorithms and app radar options serving to individuals discover profitable matches. Learn extra about LOVOO by visiting LOVOO.com, downloading the app on iPhone or Android, subscribing to the LOVOO blog, or following LOVOO on Twitter and Facebook.

Forward-Looking Statements

Certain statements on this press launch are forward-looking statements inside the that means of the Private Securities Litigation Reform Act of 1995, together with whether or not the acquisition of LOVOO furthers the Company’s technique to innovate, purchase and construct the most important cell portfolio of manufacturers for assembly new individuals; whether or not the acquisition of LOVOO will increase the Company’s world footprint, improve the Company’s scale and profitability, and diversify the enterprise mannequin by including experience in subscription and in-app buying; whether or not LOVOO can be The Meet Group’s largest app when it comes to visitors and its single most trafficked app; whether or not LOVOO will diversify The Meet Group’s cell income and greater than double its worldwide, subscription and in-app buying income; whether or not the mixed firm will obtain the Company’s anticipated scale with regard to MAU, DAU, cell chats despatched per day and new cell customers per day; whether or not the acquisition of LOVOO will considerably improve the Company’s person base and revenues, diversify the income combine, be accretive to non-GAAP earnings per share in 2018 and past; whether or not the acquisition can be funded with present money available and a rise within the Company’s present debt facility; whether or not LOVOO will stay a separate model and standalone cell utility following the closing of the acquisition; whether or not Florian Braunschweig will take over management of LOVOO efficient on the Closing; whether or not the LOVOO administration workforce will stay in place after the closing; whether or not LOVOO headquarters will stay in Dresden, Germany; whether or not and when the acquisition of LOVOO will shut; and whether or not the acquisition will generate free money move for the Company in 2018 and past. All statements aside from statements of historic info contained herein are forward-looking statements. The phrases “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “project,” “is likely,” “expect” and comparable expressions, as they relate to us, are meant to determine forward-looking statements. We have primarily based these forward-looking statements largely on our present expectations and projections about future occasions and monetary tendencies that we consider could have an effect on our monetary situation, outcomes of operations, enterprise technique and monetary wants. Important components that would trigger precise outcomes to differ from these within the forward-looking statements embrace the chance that our purposes is not going to perform simply or in any other case as anticipated, the chance that we are going to not launch extra options and upgrades as anticipated, the chance that unanticipated occasions have an effect on the performance of our purposes with standard cell working techniques, any adjustments in such working techniques that degrade our cell purposes’ performance and different sudden points which may adversely have an effect on utilization on cell units. Further info on our threat components is contained in our filings with the Securities and Exchange Commission (“SEC”), together with the Form 10-Ok for the yr ended December 31, 2016 filed with the SEC on March 9, 2017 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 filed with the SEC on May 10, 2017. Any forward-looking assertion made by us herein speaks solely as of the date on which it’s made. Factors or occasions that would trigger our precise outcomes to differ could emerge from time to time, and it isn’t attainable for us to predict all of them. We undertake no obligation to publicly replace any forward-looking assertion, whether or not because of new info, future developments or in any other case, besides as could also be required by regulation.

Regulation G – Non-GAAP Financial Measures

The Company defines cell visitors and engagement metrics (together with MAU, DAU, chats per day, and new customers per day) to embrace cell app visitors for all properties and cell internet visitors for MeetMe and Skout.

This press launch features a dialogue of Adjusted EBITDA from persevering with operations which is a non-GAAP monetary measure. For accomplished fiscal intervals, reconciliations to essentially the most immediately comparable GAAP monetary measures are supplied within the Investors part of our company web site, www.meetmecorp.com.

The Company defines Adjusted EBITDA as earnings (or loss) from operations earlier than curiosity expense, profit or provision for revenue taxes, depreciation and amortization, stock-based compensation, warrant obligations, non-recurring acquisition, restructuring or different bills, achieve or loss on cumulative overseas forex translation adjustment, achieve on sale of asset, dangerous debt expense outdoors the conventional vary, and goodwill and long-lived asset impairment fees. The Company excludes inventory primarily based compensation as a result of it’s non­money in nature.