Grindr, the world’s largest LGBTQ dating app, is expected to go public with a merger with Tiga Acquisition Corp, a special-purpose acquisition company.
The combined company is valued at $2. 1 billion, Grindr said in an announcement Monday. The merger is expected to generate $384 million for Grindr, which the company plans to use to pay off debt and fund growth.
California-based Grindr said in its announcement that it was successful and saw a 31. 5% increase in the number of paid users in December 2021. Approximately 80% of user profiles are 35 years of age or older and there is still an untapped global perspective for their services. Added.
“Grindr has established itself as the leading social network for LGBTQ people, enabling an expansion of its monetization in an ever-growing market,” said Raymond Zage, president and CEO of Tiga.
The dating app said existing shareholders would own about 80 of the company after the merger, which is expected to close in the current part of 2022.
Chinese gaming company Beijing Kunlun Tech acquired 60% of the dating app in 2016 and the rest of its shares in 2018. In 2019, the U. S. Committee on Foreign Investment (CFIUS) called Grindr’s Beijing Kunlun a national security risk. In 2020, the Chinese company sold Grinder for $620 million to San Vicente Acquisition Partners, based in San Francisco.
Tiga shares are up about 1. 5% in post-close trading.