MemberWorks Inc., a membership services firm, plans to enter the personals business by acquiring Lavalife Inc., an online dating services company based in Toronto, for $152 million (Canadian) in cash. The transaction is expected to close in April.
Lavalife senior management will purchase $11.9 million (Canadian) of MemberWorks restricted common stock at closing.
“With the acquisition of Lavalife, we will be able to broaden the scope of our online marketing presence and gain entry into the large and rapidly growing personals channel,” said Gary Johnson, CEO of MemberWorks, in a statement.
Lavalife is projecting Fiscal 2005 revenue of $120 million (Canadian). It now serves roughly 700,000 customers in the U.S., Canada and Australia.
In a separate development, Stamford, CT-based MemberWorks said it had extended the term of its bank credit facility to march 31, 2005, and increasing the borrowing amount from $28 million to $40 million (U.S.).
