MeetMe, Inc. (NASDAQ:MEET) Closes on 9.2 Million Share Public Offering, Sees 2Q2017 Target on Acquisition of if(we)

NetworkNewsWireNew York, New York, 08:30 EDT Mar 29, 2017 (NetworkNewsWire) – MeetMe, Inc. (googlechartNASDAQ:MEET) has closed on its public offering of 9.2 million shares of common stock at $5 per share. This is inclusive of the full option by underwriters for 1.2 million additional shares of common stock. Net proceeds will be used by the company for general corporate purposes and to potentially fund MeetMe’s pending acquisition of “if(we)”, a San Francisco-based social and mobile technology company, as well as other future takeovers.

MeetMe is a social network for meeting new people in the U.S. Some 80% of its one million daily user traffic comes from mobile devices, such as iPhones, iPads, and Android devices. It is becoming a gathering place for mobile users, the company said. It generates revenue from advertising, subscriptions, and virtual currency.

Targeted to close in 2Q2017, the “if(we)” acquisition would be made for $60 million in cash, and that company is anticipated to generate at least $9 million of adjusted EBITDA and be accretive to earnings in the first 12 months after closing, MeetMe noted in a news release.

“if(we)” had revenues of $44 million in 2016 and is the operator of TAGGED and Hi5, branded apps which enable people to meet and chat with others. The site features 10.4 million mobile chats daily, and 18,000 mobile app users are added each day. “if(we)” is available in 100 countries and 15 languages.

MeetMe said in its corporate presentation on the acquisition (http://nnw.fm/6rJUH) that the transaction is expected to generate cross-promotional opportunities. It added that there is a less than 5% overlap in user bases, and the two companies together can lower technology costs by standardizing products. Also, by utilizing MeetMe’s best practices, the company expects a convergence of certain key metrics, such as daily chats.

Funding for the acquisition will come from MeetMe’s cash on hand, cash from operations, and a new $30 million loan from J.P. Morgan. The combined company could generate revenues of $150 million annually and an EBITDA of $50 million, per MeetMe’s presentation materials.

For more information, visit www.MeetMeCorp.com

About NetworkNewsWire

NetworkNewsWire (NNW) provides news aggregation and syndication, enhanced press release services and a full array of social communication solutions. As a multifaceted financial news and distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

Source:NetworkNewsWire

Contact:

NetworkNewsWire (NNW) 
New York, New York 
www.NetworkNewsWire.com
212.418.1217 Office 
Editor@NetworkNewsWire.com



ABN Newswire
ABN Newswire This Page Viewed:  (Last 7 Days: 5) (Last 30 Days: 19) (Since Published: 2079)