Hong Kong’s DateTix acquires UK’s Lovestruck in match made in strategy heaven
DATETIX, one of the top 15 most-downloaded apps in Hong Kong’s lifestyle app downloads chart, has struck a deal with the U.K.’s Lovestruck in a bid to become the world’s biggest dating “marketplace”.
According to e27, the effect of the acquisition will instantaneously increase DateTix’s active user base by more than 259 percent, which is predicted to make the dating platform’s revenues skyrocket.
The combined company will involve DateTix acquiring 100 percent of Lovestruck’s issued capital for two million ordinary shares, as well as a contingent earn-out consideration of US$203,270. The deal also includes a cash consideration equal to Lovestruck’s current net cash balance.
DateTix founder and CEO Michael Ye said in a press statement: “DateTix has been experiencing very strong organic growth with Monthly Active Members up 64 percent month-on-month in May. Adding Lovestruck to our product portfolio can further accelerate our growth momentum by allowing us to strengthen our reach and user base in current markets, while entering our future target markets.”
Lovestruck, one of the top dating apps in its home market, was founded in 2006 by Laurence Holloway and Brett Harding. It was named as the fifth fastest-growing U.K. tech company in 2013 by Deloitte.
Brett Harding, Lovestruck’s CEO and co-founder, told Global Dating Insights: “We are excited about leveraging on their localized expertise for our Hong Kong and Singapore operations and, in return, look forward to imparting our knowledge and expertise gained over 10 years in the industry in order to accelerate growth of the exciting DateTix platform and their future expansion plans as part of a holistic portfolio strategy.”
— DATETIX (@DateTix) June 10, 2016
The idea of the “world’s biggest dating marketplace” is not farfetched – the online dating industry generates approximately US$2 billion in annual revenue in the U.S. alone. To put that in perspective, the entire online dating industry, including apps, generated more than US$1.6 billion just under a year ago.
Although Tinder and Bumble still dominate the Western market, DateTix has shown early potential for success – just one month after its launch in February this year, the app shot past Tinder in Hong Kong’s iOS download charts.
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