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