The Meet Group to Acquire LOVOO


  • Acquisition Projected to Increase The Meet Group’s Audience to more
    than 15 Million Mobile Monthly Active Users
  • LOVOO expected to be The Meet Group’s Single Most Trafficked App
  • Expected to Diversify The Meet Group’s Mobile Revenue, More Than
    Doubling International, Subscription, and In-App Purchasing Revenue
  • Expected to be Accretive to Non-GAAP Earnings Per Share in 2018 and
  • Funded with Existing Cash and an Increase of the Company’s Existing
    Debt Facility

Meet Group, Inc.
(NASDAQ:MEET), a public market leader in the mobile
meeting space, today announced it has executed a definitive agreement to
acquire LOVOO, a social dating app, for $70 million in cash, inclusive
of a $5 million contingent earn-out. This acquisition furthers The Meet
Group’s strategy to innovate, acquire, and build the largest mobile
portfolio of brands for meeting new people. The LOVOO acquisition is
expected to expand The Meet Group’s global footprint, increase the
company’s scale and profitability, and diversify its business model by
adding expertise in subscription and in-app purchasing.

This Smart News Release features multimedia. View the full release here:

LOVOO is a social and mobile technology company based in Germany:

  • The #1 Dating App in German speaking countries (Germany, Switzerland
    and Austria) in terms of app store downloads. Top 3 in Southern Europe
    (Italy, Spain and France)
  • Trailing twelve-month revenue of €27.2 million or $32.4 million based
    on current exchange rates
  • Diversified revenue streams: Subscriptions 48%; In-app Purchases 24%;
    Ads 28%
  • Expected to represent The Meet Group’s largest single app in terms of

    • Approximately 5 million monthly active users (MAU) and 1.9 million
      daily active users (DAU)
  • 47,000 new global registrations per day
  • 97 Full-time employees – Dresden and Berlin

Key highlights of the expected scale of The Meet Group plus LOVOO

  • Projected Mobile MAU of 15.8 million, an increase of 48% from The Meet
    Group’s 10.7 million average in Q2 2017
  • Projected Mobile DAU of 4.6 million, an increase of 71% from The Meet
    Group’s 2.7 million average in Q2 2017
  • Projected Mobile chats sent per day of 74.6 million, an increase of
    19.9% from The Meet Group’s 62.2 million average in Q2 2017
  • Projected Mobile new users per day of 193,000, an increase of 32% from
    The Meet Group’s 146,000 per day average in Q2 2017

Financial impact of acquisition:

  • Expected to provide significantly increased scale in user base and
  • Expected to diversify the Company’s revenue mix, increasing
    international mobile revenue by 169% and increasing mobile
    non-advertising revenue by 168% in Q2 on pro-forma combined basis
  • Expect acquisition to be accretive to the Company’s non-GAAP EPS in
    2018 and beyond
  • Expect transaction to be financed with existing cash on hand and a
    non-dilutive increase to $80 million of the Company’s existing debt
    facility, with JPMorgan Chase Bank, N.A. and Silicon Valley Bank
    acting as co-lead agents

Geoff Cook, CEO of The Meet Group, said, “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 remain a separate brand and
standalone mobile application following the closing of the acquisition,
and that LOVOO’s headquarters will remain in Dresden, Germany. The
Company has extended offers to all of LOVOO’s 97 full time employees.
LOVOO’s Co-Founder and CEO Benjamin Bak has agreed to assist with the
transition for six months after closing. Effective upon closing, Florian
Braunschweig, current COO and Co-Founder, has agreed to take over
leadership of LOVOO as the new General Manager and Managing Director.
The rest of the LOVOO management team is expected to remain 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 legal counsel to The Meet

Webcast and Conference Call Details

Management will host a webcast and conference call today, September 20,
2017 at 11:00 a.m. Eastern time to discuss the acquisition. To access
the call dial 888-461-2021 (US and Canada) (+1 719-325-2111 outside the
United States and Canada) and when prompted provide the participant
passcode 4996344 to the operator. In addition, a webcast of the
conference call will be available live on the Investor Relations section
of the Company’s website at
and a replay of the webcast will be available for 90 days.

About The Meet Group

The Meet Group (NASDAQ:MEET) is a fast-growing portfolio of mobile apps
designed to meet the universal need for human connection. Using
innovative products and sophisticated data science, The Meet Group keeps
its approximately 2.7 million mobile daily active users engaged and
originates untold numbers of casual chats, friendships, dates, and
marriages. The Meet Group offers advertisers the opportunity to reach
customers on a global scale with hundreds of millions of daily mobile ad
impressions. The Meet Group utilizes high user density, economies of
scale, and leading monetization strategies with the goal of maximizing
adjusted EBITDA. The Company’s apps – currently MeetMe®, Skout®,
Tagged®, and Hi5® – let users in more than 100 countries chat, share
photos, stream live video, and discuss topics of interest, and are
available on iPhone, iPad, and Android in multiple languages. For more
information, please visit


Founded in 2012, LOVOO is
a leading European dating app and the largest German-speaking dating app
by downloads. The privately held company is based in Dresden and Berlin,
Germany, and is available in 15 languages to its 1.9 million mobile
daily active users. LOVOO changes people’s lives by changing how they
meet through innovative location-based algorithms and app radar features
helping people find successful matches. Learn more about LOVOO by
downloading the app on iPhone or Android, subscribing to the LOVOO blog,
or following LOVOO on Twitter and Facebook.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995, including whether the acquisition of LOVOO furthers the Company’s
strategy to innovate, acquire and build the largest mobile portfolio of
brands for meeting new people; whether the acquisition of LOVOO will
expand the Company’s global footprint, increase the Company’s scale and
profitability, and diversify the business model by adding expertise in
subscription and in-app purchasing; whether LOVOO will be The Meet
Group’s largest app in terms of traffic and its single most trafficked
app; whether LOVOO will diversify The Meet Group’s mobile revenue and
more than double its international, subscription and in-app purchasing
revenue; whether the combined company will achieve the Company’s
expected scale with regard to MAU, DAU, mobile chats sent per day and
new mobile users per day; whether the acquisition of LOVOO will
significantly increase the Company’s user base and revenues, diversify
the revenue mix, be accretive to non-GAAP earnings per share in 2018 and
beyond; whether the acquisition will be funded with existing cash on
hand and an increase in the Company’s existing debt facility; whether
LOVOO will remain a separate brand and standalone mobile application
following the closing of the acquisition; whether Florian Braunschweig
will take over leadership of LOVOO effective at the Closing; whether the
LOVOO management team will remain in place after the closing; whether
LOVOO headquarters will remain in Dresden, Germany; whether and when the
acquisition of LOVOO will close; and whether the acquisition will
generate free cash flow for the Company in 2018 and beyond. All
statements other than statements of historical facts contained herein
are forward-looking statements. The words “believe,” “may,” “estimate,”
“continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,”
“potential,” “project,” “is likely,” “expect” and similar expressions,
as they relate to us, are intended to identify forward-looking
statements. We have based these forward-looking statements largely on
our current expectations and projections about future events and
financial trends that we believe may affect our financial condition,
results of operations, business strategy and financial needs. Important
factors that could cause actual results to differ from those in the
forward-looking statements include the risk that our applications will
not function easily or otherwise as anticipated, the risk that we will
not launch additional features and upgrades as anticipated, the risk
that unanticipated events affect the functionality of our applications
with popular mobile operating systems, any changes in such operating
systems that degrade our mobile applications’ functionality and other
unexpected issues which could adversely affect usage on mobile devices.
Further information on our risk factors is contained in our filings with
the Securities and Exchange Commission (“SEC”), including the Form 10-K
for the year 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 statement
made by us herein speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict all
of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.

Regulation G – Non-GAAP Financial Measures

The Company defines mobile traffic and engagement metrics (including
MAU, DAU, chats per day, and new users per day) to include mobile app
traffic for all properties and mobile web traffic for MeetMe and Skout.

This press release includes a discussion of Adjusted EBITDA from
continuing operations which is a non-GAAP financial measure. For
completed fiscal periods, reconciliations to the most directly
comparable GAAP financial measures are provided in the Investors section
of our corporate website,

The Company defines Adjusted EBITDA as earnings (or loss) from
operations before interest expense, benefit or provision for income
taxes, depreciation and amortization, stock-based compensation, warrant
obligations, non-recurring acquisition, restructuring or other expenses,
gain or loss on cumulative foreign currency translation adjustment, gain
on sale of asset, bad debt expense outside the normal range, and
goodwill and long-lived asset impairment charges. The Company excludes
stock based compensation because it is non­cash in nature.

MEET Investor Contact:
Blueshirt Group
Allise Furlani or Brinlea Johnson
Press Contact:

Brandyn Bissinger

Source: The Meet Group, Inc.