gay dating and hookup app announced it has entered into an agreement with Tiga Acquisition Corp. (TAC), a special purpose acquisition company.
The two companies have agreed to merge under the name Grindr, Inc. in a deal that has valued the app at $2.1 billion. “Grindr is well positioned to be a public company and will continue to expand the ways it serves the LGBTQ+ community, from products, services to the philanthropic and advocacy work done through Grindr 4 Equality,” Grindr CEO Jeff Bonforte said in a statement announcing the merger.“Grindr has established itself as the primary social network for LGBTQ+ people, enabling meaningful expansion of its monetization within a continuously growing market,” G.
Raymond Zage, chairman and CEO of TAC, said in the statement. “We are excited to bring this diverse and thoughtful board together with the talented Grindr team to grow the business and deepen its commitment to the LGBTQ+ community.”Rather than going public in a traditional IPO, Grindr has instead chosen to merge with TAC, a shell acquisition company that is already publicly traded.
The agreement calls for raising $384 million, including $284 million of TAC’s cash, as well as up to $100 million in a forward purchase agreement.