Lavalife turns romance into money
Last Updated Thu, 04 Mar 2004 11:35:24
TORONTO - Online dating service Lavalife has found happiness in the arms of a U.S. suitor, MemberWorks Inc. of Stamford, Conn.
MemberWorks said Thursday that it will buy Toronto-based Lavalife for $152.5 million cash.
The U.S. company offers its 6.3 million retail members services and discounts on health care, personal finance, insurance, travel, entertainment, computing, fashion and personal security.
MemberWorks, which reported revenue of $237 million US for the six months ended Dec. 31, bought Lavalife to get into "the large and rapidly growing personals channel," president and CEO Gary Johnson said in a statement.
"Lavalife provides several key elements in extending our business online: a proven business model, expanded demographics, unique and expanding services, key strategic partnerships, and a solid track record," he said.
Lavalife had revenue of $102.6 million and operating profit of $17.4 million in the year ended Sept. 30, 2003.
More than 700,000 singles, mainly in the U.S., Canada, and Australia, use Lavalife "to spontaneously communicate and search for a date, meet new people, and more actively manage their social lives," MemberWorks said.
On Thursday morning, Lavalife's website said "there are 16,839 singles on Lavalife right now! What are you waiting for?"
Lavalife CEO Bruce Croxon said the deal "will allow us to accelerate our top line growth, leverage our business model and leading brand with MemberWorks capital, management expertise, and synergies."
Lavalife senior management will buy $11.9 million of MemberWork's restricted common stock on closing. MemberWorks shares trade on the NASDAQ.
Written by CBC News Online staff
Last Updated Thu, 04 Mar 2004 11:35:24
TORONTO - Online dating service Lavalife has found happiness in the arms of a U.S. suitor, MemberWorks Inc. of Stamford, Conn.
MemberWorks said Thursday that it will buy Toronto-based Lavalife for $152.5 million cash.
The U.S. company offers its 6.3 million retail members services and discounts on health care, personal finance, insurance, travel, entertainment, computing, fashion and personal security.
MemberWorks, which reported revenue of $237 million US for the six months ended Dec. 31, bought Lavalife to get into "the large and rapidly growing personals channel," president and CEO Gary Johnson said in a statement.
"Lavalife provides several key elements in extending our business online: a proven business model, expanded demographics, unique and expanding services, key strategic partnerships, and a solid track record," he said.
Lavalife had revenue of $102.6 million and operating profit of $17.4 million in the year ended Sept. 30, 2003.
More than 700,000 singles, mainly in the U.S., Canada, and Australia, use Lavalife "to spontaneously communicate and search for a date, meet new people, and more actively manage their social lives," MemberWorks said.
On Thursday morning, Lavalife's website said "there are 16,839 singles on Lavalife right now! What are you waiting for?"
Lavalife CEO Bruce Croxon said the deal "will allow us to accelerate our top line growth, leverage our business model and leading brand with MemberWorks capital, management expertise, and synergies."
Lavalife senior management will buy $11.9 million of MemberWork's restricted common stock on closing. MemberWorks shares trade on the NASDAQ.
Written by CBC News Online staff
