Under the terms of the merger deal, Spark will acquire 100% of Zoosk’s shares for a combination of cash and Spark shares, valuing Zoosk at approximately $258m based on the closing price of Spark ADSs on June 28, 2019.
Based on current financial trajectories and the synergies identified between the two entities, the acquisition is expected to deliver substantial shareholder value, with Adjusted EBITDA forecasted at over $50m in 2020, or nearly $2 per share assuming Spark’s post-merger share count.
Steven McArthur, outgoing CEO of Zoosk, Inc. will join Spark’s Board of Directors.
Led by Jeronimo Folgueira, CEO, Spark Networks is America’s second largest dating company, listed on the New York Stock Exchange American under the ticker symbol “LOV”, with headquarters in Berlin, Germany, and offices in New York, Utah and San Francisco. The company’s portfolio of premium and freemium dating apps include Zoosk, EliteSingles, Jdate, Christian Mingle, eDarling, JSwipe and SilverSingles, among others.
Spark Networks SE in its current form is the result of the merger between Affinitas GmbH and Spark Networks Inc in 2017 and the addition of Zoosk Inc in 2019.
Spark has over one million monthly paying subscribers globally.