23 Jun 2011 07:00
| Date: | 23 June 2011 |
| On behalf of: | Cupid plc ('Cupid', the 'Company' or the 'Group') |
| Embargoed until: | 0700hrs |
Cupid plc
Acquisition of German online dating business
Cupid plc (AIM: CUP), the online dating company, is pleased to announce the acquisition of 75% of two German online businesses, OnlineLiebe GmbH and WomenWeb GmbH, for a total of €2.75m (£2.5m). The two companies are run together by the same team in Munich, led by founder Andreas von Maltzan, who is recognised as one of the pioneers and leaders in the German dating market, having established Neu.de, Germany's most popular dating site, which was sold to Meetic in 2007. Andreas has a track record of producing successful German online businesses and will continue to run the German sites, becoming a valuable addition to Cupid's management team.
OnlineLiebe GmbH is a recently created niche online dating provider with sites such as Zuckerjungs.de, Zuckerdaddys.de, Gleicheliebe.de and Gayjz.de. Its leading site, Zuckerjungs.de, was founded last year and has already become the market leader in the 'Cougar' dating niche in Germany, as well as in Austria and Switzerland where the sites are called Zuckerburschen.at and Zuckerjungs.ch respectively.
WomenWeb GmbH is Germany's largest online community network of female interest websites with domains such as Womenweb.de, Frauen.de, Kochrezepte.de, Allegraclub.de, Esoteriktreff.de, Hochzeits-club.de and eight other portals. WomenWeb GmbH also provides online communities for a number of well-known German women's magazines such as Petra, Fuersie, Vital, Plus-Magazin and Frau im Leben.
The acquisition will enable Cupid to combine its strength in online marketing with the existing local expertise of the Munich based team and the German billboard advertising strength of Stroer Out-of-Home Media AG to target rapid expansion in Germany.
The remaining 25% of the business is owned by a combination of Media Ventures GmbH, and Andreas von Maltzan.
Media Ventures GmbH, owned jointly by Dirk Stroer, of Deutsche-Boerse-listed Stroer Out-of-Home Media AG (SAXG.DE), has agreed to inject a multi-million Euro advertising budget into billboard advertising in Germany for the sites over the next three years.
The combined purchase price of €2.75m (£2.5m) for 75% of the equity of both companies will be paid within the next two weeks. A mechanism has been agreed to value both companies at 1.7 times revenues, should Cupid wish to purchase the remaining 25% of the equity in both companies. This option can be exercised by Cupid, at its sole discretion, between 1 January 2012 and 31 December 2014.
The combined businesses delivered revenues of approximately €0.85m (£0.77m) in 2010 and a loss of €0.18m (£0.16m). The acquisition is expected to be earnings neutral in 2011 and earnings enhancing in its first full year.
Commenting on the acquisition, Bill Dobbie, Chief Executive of Cupid, said:
"This acquisition continues our stated strategy of international expansion and is an excellent opportunity for us to gain a foothold in the German-speaking markets. We are confident that we will be able to grow the newly acquired sites through our experience in the online dating market, coupled with the local knowledge of the existing teams and the added benefit of a sustained billboard advertising campaign that has been arranged as part of the transaction."
For further information please contact:
Cupid plc | Tel: +44 (0)131 220 1313 |
Bill Dobbie, CEO 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.