LGBTQ+ dating app Grindr announced on Monday the potential business combination agreement with special purpose acquisition company Tiga Acquisition (NYSE: TINV). The transaction values the combined company at an enterprise value of US$2.1 billion.
Through the deal, the online platform is expected to generate proceeds of around US$284 million in cash from the SPAC and up to US$100 million in a forward purchase agreement. The transaction price also puts Grindr’s value 27 times its 2021 adjusted EBITDA.
Post-merger, Grindr shareholders would own 78% of the resulting merger. But prior to that, Tiga Investments CEO Raymond Zage already owns 41% equity in the consortium that acquired Grindr.
The firms are expecting the deal would still have to pass the Committee on Foreign Investment in the United States since the SPAC is based in Singapore.
Previously, the committee ordered Chinese internet firm Kunlun to sell Grindr amid national security concerns on personal data of US citizens. Kunlun sold the firm two years ago for US$260 million.
The black check firm 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 securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
