Dating app Grindr slides toward potential US$2.1 billion merger SPAC

LGBTQ+ dating app Grindr announced on Monday the potential business combination agreement with a special purpose acquisition company Acquisition of Tiga (NYSE: TINV). The transaction values ​​the combined company at an enterprise value of US$2.1 billion.

Through this agreement, the online platform is expected to generate proceeds of approximately US$284 million in cash from SPAC and up to US$100 million under a forward purchase agreement. The transaction price also puts Grindr’s value at 27 times its 2021 Adjusted EBITDA.

After the merger, Grindr shareholders would own 78% of the resulting merger. But before that, the CEO of Tiga Investments, Raymond Zage, already owns 41% of the capital of the consortium that acquired Grindr.

The companies expect the deal will still have to pass the Foreign Investment Committee in the United States since SPAC is based in Singapore.

Previously, the committee ordered Chinese internet company Kunlun to sell Grindr over national security concerns over US citizens’ personal data. Kunlun sold the company two years ago for $260 million.

The black check company completed its US$200 million IPO in November 2020.

Tiga Acquisition last traded at US$10.25 on the NYSE.

Information for this briefing was found via Reuters and the companies mentioned. The author has no security or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author holds no license.

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