Bumble, the Austin, Texas-based dating app company, has officially closed a deal that will see it acquired by Ithaca Holdings for $1.3 billion.
Bumble announced the sale Tuesday morning, less than 24 hours after numerous outlets reported the firm — which remains one of the largest dating brands in the world but has struggled for years amid a broader decline in the dating app business — was in advanced talks on a deal that would reportedly value it around $1 billion.
The higher $1.3 billion valuation means common shareholders will receive $6.05 per share, the company said. In recent months, the stock has mostly traded below $3, although it spiked Monday and again on Tuesday after the deal news.
“Bumble was founded on a simple belief: meaningful relationships are essential to a healthy, happy life. Today, that belief feels more important than ever,” Whitney Wolfe Herd, the company’s founder and CEO, said in a statement. The SMU graduate added that Ithaca Holdings “shares our vision, believes in our women-first mission, and is committed to investing in Bumble’s future.”
In their own statement, Ravi Gupta and John Hegeman, Ithaca’s cofounders, called the acquisition — the holding company’s first investment — “a bet on the future of humanity.”
“People and societies will always need connection, relationships, love, and family,” they continued, “and we are excited to build on Bumble’s legacy and share its mission with the next generation of members.”
The acquisition was finalized after Ithaca’s proposal won approval from a special committee of Bumble’s board. Wolfe Herd had recused herself from that committee but later approved the deal. Once the transaction finalizes, Gupta and Hegeman will become co-CEOs, and Wolfe Herd will “remain actively involved,” the current CEO said.
Ithaca, which was founded this year by Gupta and Hegeman, who are both former tech executives, describes itself as a holding company for “enduring, market-leading technology businesses” that seeks to “renew established companies and unlock their long-term potential.”