App Grindr Is Set To Get Listed At $2.1 Billion

App Grindr is Set to Get Listed at $2.1 Billion

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App for gay dating Grindr would go public through a $2.1 billion merger with a blank-check acquisition firm, with Tiga Investments CEO on both sides of the deal.

After the merger, existing Grindr owners would own 78 percent of the company, which occurred two years after China’s Kunlun Tech Co sold it for $620 million because of national security concerns in the United States.

Tiga will pay Grindr $284 million in cash and up to $100 million in a forward purchase agreement as part of the acquisition. Match Group Inc (MTCH) and Bumble Inc (Bumble) are going at 22 times and 25 times their respective 2021 EBITDA, respectively.

According to a copy of their merger agreement, Grindr and Tiga believe their deal to seek approval from the Committee on Foreign Investment in the United States (CFIUS), which reviews mergers for potential national security issues.

Zage owns Tiga Acquisition Corp, a Singapore-based special purpose acquisition company (SPAC) that is merging with Grindr. Grindr did not reveal the identities of its current shareholders, but Zage held a 41% stake in the group that bought the company.

It’s unclear whether CFIUS played a factor in Grindr’s decision to look at a sale and consolidation with a SPAC. Grindr’s CEO and COO are stepping down, and Bonforte’s replacement is being sought.

Grindr has 11 million active monthly users, and last year’s income increased by 30%. CFIUS received information on the transaction from Kunlun and Grindr that opposed statements to prospective buyers and Chinese regulators.

Before they agreed to work together, Bonforte and Marini were members of the investment firm Catapult Capital, which contested against Lu and Zage to buy Grindr.

Another big shareholder, the Atlanta Hawks co-owner, was part of the group that bought Grindr two years ago and will remain invested in the company, according to the source.

Grindr is valued at 27 times its estimated 2021 net income and amortization of $77 million, according to the transaction.

Following a corporate governance assessment, the board of directors of Indian payments startup BharatPe suggested numerous actions. Numerous employees and vendors have been fired, and criminal charges have been filed against them for misbehavior.

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