22 Aug 2011 07:00
| Date: | 22 August 2011 |
| On behalf of: | Cupid plc ('Cupid', the 'Company' or the 'Group') |
| Embargoed until: | 0700hrs |
Cupid plc
Acquisition of Brazilian online dating business
Cupid plc (AIM: CUP), the online dating company, is pleased to announce the acquisition of several Brazilian online dating sites for a total of USD 0.75m (£0.5m).
The sites include AondeNamoro.com, a traditional online dating site, and SolteirosComFilhos.com, an online dating site for single parents. The combined sites have 1.4 million members.
The sites have been under the ownership and management of well known and respected Brazilian dating entrepreneur Edgard Nogueira. Based in Rio de Janeiro, Edgard will continue to work with Cupid over the next six months.
Of the USD 0.75m (£0.5m) total purchase price, USD 0.5m (£0.35m) is payable within the next two weeks, and USD 0.25m (£0.15m) is conditional upon the achievement of business targets over the next six months.
The acquisition will enable Cupid to gain a foothold in the Brazilian dating market. It is estimated that there are in the region of 62 million singles in Brazil, and the internet dating market there is a growth market, a few years behind the North America growth market curve.
During 2010, the sites delivered revenues of USD 0.20m (£0.12m) and a profit of USD 0.14m (£0.08m).
Commenting on the acquisition, Bill Dobbie, Chief Executive of Cupid plc, said:
"This acquisition provides a great opportunity for us to gain a foothold into Brazil. This is a market that we see as having strong medium to long term potential for Cupid plc. We are confident that, through a combination of our experience in online dating marketing and the support and local knowledge of the team in Rio de Janeiro, we can continue to improve these sites' performance."
Max Polyakov, International Business Development Director of Cupid plc, said:
"We believe this acquisition represents an excellent opportunity for the Company in line with our stated strategy to increase the proportion of revenues from markets outside the UK. We continue to look for opportunities to expand into further regions where we believe strong growth potential exists."
For further information please contact:
Cupid plc | Tel: +44 (0)131 220 1313 |
Mark Doughty, CFO | |
Peel Hunt LLP (Nominated Adviser and Broker) | Tel: +44 (0)207 418 8900 |
Richard Kauffer Daniel Harris | |
Redleaf Polhill | Tel: +44 (0)207 566 6700 |
Henry Columbine Luis Mackness | cupid@redleafpr.com |
Notes to Editors
§ Cupid plc listed on AIM in June 2010 and is a leading provider of online dating services
§ Cupid has built a base of over 23 million members in 39 countries (those countries with over 1,000 members), with a growing proportion of members coming from outside of the United Kingdom.
§ Cupid offers a wide variety of online dating services allowing members to interact with each other and access the content available on the Group's websites. These websites are intended to appeal to dating users of diverse ages, cultures and social interest groups. The Group's most heavily visited websites include www.cupid.com, www.flirt.com, www.benaughty.com, www.girlsdateforfree.com and www.datetheuk.com. The Group also promotes the niche brands www.datingforparents.com, www.indiandating.com and www.maturedating.co.uk.
§ The majority of services are also available via Apple and Android App Stores for mobile users as well as through their own Facebook apps - eg. http://apps.facebook.com/cupidcom and http://apps.facebook.com/benaughtynow.
§ Further information on the Company can be found at www.cupidplc.com.