Grindr LLC, the dating app targeting the LGBTQ+ community, is said to agree to a deal go public through SPAC Tiga Acquisition Corp. (NYSE:TINV) that will value the combined company at $2.1 billion. Tiga gained almost 1% in after hours trading.
The transaction is expected to provide Grindr with about $384 million, according to a Bloomberg report, which cited an interview Grindr CFO Gary Hsueh. Grindr was approached by about a half-dozen SPACS before deciding on a deal with Tiga. Grindr's deal to go public is expected to close by the end of they ear.
Grindr will be competing in the public market with other dating apps including Match Group's (MTCH) Tinder and Bumble (BMBL), which itself went public in February 2021. Revenue for Grindr excluding certain items rose 30% to $147 million in 2021 and Grindr is forecasting sales growth of 35%-40% this year, according to the report.
Grindr is now owned by San Vicente Acquisition Partners after U.S. regulators forced Chinese firm Beijing Kunlun Tech Co. to sell it over national security concerns. San Vicente purchased the dating app for about $600 million in 2020, according to various media reports.