Grindr LLC, the dating app targeting the LGBTQ+ community, has reportedly agreed to a deal being made public through SPAC Tiga Acquisition Corp. (NYSE: TINV) which will value the combined company at $2.1 billion. Tiga gained nearly 1% after hours trading.
The transaction is expected to provide Grindr with around $384 million, according to a Bloomberg report, which cites an interview with Grindr’s chief financial officer, Gary Hsueh. Grindr was approached by about half a dozen SPACS before deciding on a deal with Tiga. Grindr’s deal to go public is expected to close by the end of the year.
Grindr will compete in the public market with other dating apps, including Match Group (MTCH) Tinder and Bumble (BMBL), which itself went public in February 2021. Grindr’s revenue excluding some items grew 30% to $147 million in 2021 and Grindr is forecasting 35% to 40% sales growth this year, according to the report.
Grindr is now owned by San Vicente Acquisition Partners after US regulators forced Chinese company Beijing Kunlun Tech Co. to sell it over national security concerns. San Vicente bought the dating app for around $600 million in 2020, according to various news outlets.
Also see earlier on Monday Goldman Sachs said it is pulling out of most SPACs over liability issues and earlier Match Group (MTCH) is suing Google alleging App Store monopoly.