FriendFinder Bets on JigoCity in Acquisition
BOCA RATON, Fla -- FriendFinder Networks this morning said it will acquire BDM Global Ventures, the parent of JigoCity, which operates a string of local daily deals site, in a deal that could be worth as much as $65 million.
Based in Los Angeles, JigoCity has about 150 employees, and operates sites in Australia, Brazil, China, Hong Kong, the U.S., Malaysia Singapore and Taiwan.
JigoCity had revenue of about $600,000 in July and $1.1 million in August, and now has over 1 million members, FriendFinder said.
Following the acquisition, JigoCity will retain its brand identity. The company will also remain based in Los Angeles, California with its Asia headquarters in Shanghai, China.
The acquisition price is based on 1.6 million in FriendFinder shares and about 6.4 million warrants with prices ranging from $5 to $18 a share.
Currently, with FriendFinder trading at $2.71 a share, the stock portion of the deal is worth about $4.3 million, with the acquisition price dependent on the performance of FriendFinder stock in the months and years ahead.
FriendFinder is betting on JigoCity to benefit from its social networking platform, affiliate network and global reach, and FriendFinder hopes to find another way for the company to monetize its foreign markets.