Ithaca Holdings has announced this Tuesday the purchase of the company that owns the dating app Bumble, originally from the United States, for a total of 1.3 billion dollars (about 1.16 billion euros). After the operation is completed, the company will stop trading on the markets.
Bumble shareholders will receive a cash payment of 6.05 dollars (5.41 euros) per share, which represents a premium of 138% over the closing price on October 9 and 119% compared to the average price recorded in the last 30 days.
The transaction has been endorsed by an independent committee of the board of directors, which has determined that the operation is in the "best interest" of the shareholders. Subsequently, the board voted in favor and the reference partners, subsidiaries of Blackstone and its founder and CEO, Whitney Wolfe, also gave their approval.
Ithaca focuses its activity on applying technology to companies through artificial intelligence in order to "enrich people's lives and create lasting value" and will work alongside Whitney Wolfe to "help people find connections in life and love towards the next era."
As a result of the agreement, Bumble will leave the stock market and become a private company, with offices in London, Austin, and New York, maintaining its headquarters in Austin.
Once the purchase is closed, the co-CEOs of Ithaca, Ravi Gupta and John Hegeman, will assume the same position at Bumble.
"I am deeply grateful to the entire Bumble team, whose dedication and conviction in our mission have made this company what it is today. At Ithaca, we have found a partner who shares our vision, believes in our mission to prioritize women, and is committed to investing in the future of Bumble. I thank the special committee for their meticulous work and I am pleased to support this transaction according to the recommendation of the board," said Whitney Wolfe.
"Bumble has a unique combination of essential attributes, including a trusted brand and a loyal community. As technology and dating habits evolve, we see enormous potential to take it together to the next era, building on the foundations that Whitney and the talented Bumble team have created. Whitney has a clear vision and solid principles, and we thank her for her collaboration as we drive her mission together," said Ravi Gupta and John Hegeman.