From Seekingalpha · Andriy Blokhin · · 1m
Ithaca Takes Bumble Private at $6.05
Ithaca Holdings acquires Bumble Inc. for $6.05 per share, creating a $1.3B deal with debt payoff.
In brief
Ithaca Holdings acquires Bumble Inc. for $6.05 per share, creating a $1.3B deal with debt payoff. Ithaca Holdings takes Bumble private at $6.05 per share, a fair exit given Bumble's risks and debt. Originally reported by Seekingalpha.
Ithaca Takes Bumble Private
Ithaca Holdings is taking Bumble Inc. private at $6.05 per share, a deal worth about $1.3B including debt.
No Shareholder Vote Needed
Controlling shareholders approved the deal by written consent, so no shareholder vote is required.
Low Multiple But Risky
The deal at 4.2x adjusted EBITDA looks low but reflects Bumble losing paying users at mid-teens rates and carrying expensive debt.
Debt Payoff Boosts Cash
Paying off the ~12% term loan frees up about $50M a year for Ithaca, making Bumble's tax losses easier to use.
Fair Exit With Upside
Shareholders get a certain exit at more than 2x the stock’s June price, with upside from a turnaround going to Ithaca and Wolfe Herd.
The takeaway
Ithaca Holdings takes Bumble private at $6.05 per share, a fair exit given Bumble's risks and debt.
