Cupid takes a fancy to Uniform Dating
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Dating business Cupid, which topped the Business XL Rising Stars 2011 list, has completed a new acquisition and raised further funds.
AIM-listed online dating company Cupid has purchased Uniform Dating in a deal worth up to £7 million and raised fresh funds to finance it.
Uniform Dating is a niche uniformed personnel dating business for users such as firefighters, nurses and police, as well as those that would like to date them.
According to Cupid, Uniform Dating has 500,000 registered members, a figure which has doubled over the past two years. Its turnover for the year to date 31 December 2011 was £2.5 million, with an adjusted EBITDA of £700,000.
To part finance the acquisition Cupid has placed 1.8 million new ordinary shares at a price of 200 pence per share to raise £3.6 million and part finance the buy.
The Uniform Dating transaction will see Cupid pay an initial £3.6 million on completion. A further £2 million is payable in January 2013, with £1 million due in July 2013. Each deferred payment is conditional on achieving certain revenue and gross profit targets and an additional £400,000 is up for grabs during the first six months of 2013 if Uniform Dating hits certain EBITDA levels.
Bill Dobbie, chief executive of Cupid, says the company is pleased to be able to add another 'high quality business' to its portfolio.
He adds, 'Uniform Dating is a fast growing, profitable business which is a dominant player in the uniformed personnel dating niche and fits perfectly into our portfolio of sites.
'This acquisition further demonstrates our ongoing plan to drive earnings and shareholder value both organically and through strategic acquisitions.'