Dallas-based dating company Match Group is set to become an independent company next year after its parent-company IAC filed to separate.
IAC, a New York-based conglomerate that owns brands such as Vimeo, Angie's List and the Daily Beast, filed plans to split the two companies in a deal that would eliminate a dual-class structure that gives IAC a controlling interest in Match Group. The deal would give IAC shareholders a mix of Match Group stock and cash.
Match Group is the owner of Match.com, OkCupid, Tinder and other popular dating apps and has been publicly traded since 2014. IAC bought Match.com in 1997 and pursued purchases to build the web dating powerhouse.
"We've long said IAC is the 'anti-conglomerate' � we're not empire builders," said a statement from IAC chairman and senior executive Barry Diller. "We've always separated out our businesses as they've grown in scale and maturity and soon Match Group, as the seventh spin-off, will join an impressive group of IAC progeny collectively worth $58 billion today."
The deal is expected to close by the end of June.
Match Group has a market value of about $21 billion and shares of the company's stock rose 7% in Thursday morning trading.
The company had about 9.6 million subscribers in the third quarter, making it a profit of $151 million for the quarter on $541 million in revenue. The company, which had $1.7 billion in revenue last year as the region's 47th largest public company, owns about 50 brands including PlentyofFish, Pairs, Meetic and Hinge, an app that uses Facebook friend connections to facilitate meetings.
Match Group CEO Mandy Ginsberg said going independent would allow the company to make more acquisitions, buy back stock more easily as well as be included on the S&P 500 in the future.
"We have virtually all the functions we need to be a fully independent, standalone company and we are ready to go," Ginsberg said in a call with investors.
It will cost Match Group about $840 million to finance the spin-off, including $340 million in cash and $500 million in new debt, according to Match Group CFO Gary Swidler.
