DateTix will be acquiring the entire issued capital of Lovestruck for 2 million of DateTix’s ordinary shares and a contingent earn-out consideration of up to A$270,000, along with cash consideration equivalent to Lovestruck’s existing net cash balance at settlement date, the company said.
A matchmaking app founded to take on Tinder, DateTix said its active user base will more than double post the takeover. Number of active members using the service are growing at 64 per cent, helping the startup earn $2.3 million in revenue.
With footprints in Hong Kong, Singapore and the UK, Lovestruck will help DateTix rev up its current operations in these markets while launching the service in Europe. “DateTix plans to expand its platform concurrently with Lovestruck’s into new markets to capture a broader spectrum of users, ranging from casual daters to those seeking serious long-term relationships,” the company said
The takeover will also create significant potential for profitable expansion by localizing Lovestruck for China and other high growth markets, along with the synergies in reducing expansion cost and improved revenue from cross-selling, the Aussie firm said.
Shenzhen, Shanghai, Beijing and Guangzhou will be among the first cities in China that London-based Lovestruck will reach following the acquisition.