Zoosk to be acquired by Spark Networks SE for $255mn
Spark Networks, a global online dating services company headquartered in Berlin, Germany, announced this week its entry into a binding agreement to acquire US dating app company Zoosk Inc. The deal will see Spark Networks acquire 100% of Zoosk's shares with a combination of cash and stock valuing the company at approximately US$255mn, based on the closing price of Spark Networks stock on March 20, 2019.
The acquisition will more than double the size of Spark Networks, with over two thirds of the company’s revenue expected to be generated in the North American region by 2020.
"Zoosk is one of the strongest dating apps in the North American market, which comprises half of the $5 billion global online dating opportunity," said Jeronimo Folgueira, Chief Executive Officer of Spark Networks SE.
"Similarly, North America has been a key strategic market for Spark, and the focal point for our growth initiatives. Our deal with Zoosk creates the second largest online dating platform in North America and the second largest publicly-listed dating company in the world. Over the past 18 months, our management team has successfully integrated acquisitions and developed new brands. As a result of these efforts, our brand portfolio now includes SilverSingles, which continues to exceed our expectations, and the Christian Mingle, Jdate and JSwipe brands, which have all shown significant improvement since they were acquired in late 2017. Our acquisition of Zoosk is the most transformative deal in our history, and we expect the transaction to immediately strengthen our position in the online dating market. With the increased scale that results from the combination, we see a clear path to profitability improvements and greater opportunity to invest in innovation and growth initiatives that will drive shareholder value."
As part of the transaction, Spark will issue approximately 13mn American Depository Shares (ADSs) valued at approximately $150mn based on the closing price of Spark Networks SE stock of $11.53 on March 20, 2019. Additionally, Zoosk shareholders will receive net cash consideration of $95 million at closing and $10mn via a deferred cash payment in December 2020, which will be funded through a new $120mn senior secured debt facility.
The existing Spark Networks SE executive team will manage the combined company, wth Steven McArthur, Zoosk's CEO and Deepak Kamra, General Partner at Canaan Partners, Zoosk's largest shareholder, being promoted to Spark's Board of Directors following the closure of the transaction in Q3, 2019.
"We are excited to help create such a broad and powerful portfolio of brands that will address specific user needs in the dating market globally, while leveraging the best of both companies to create a world-class platform to serve customers across these brands," said McArthur.
Health Catalyst: An agile approach to healthcare data
Healthcare Catalyst is quite literally a healthcare providers’ catalyst for change when it comes to their measurable, data-informed improvement in analytics, software and services.
Founded in 2008 in Salt Lake City, Utah, Health Catalyst is dedicated to enabling health care organisations to build a healthcare-specific, open, flexible, and scalable data platform and fully integrated suite of analytics applications.
This enables health system partners, including Northwell Health in New York which serves a population of 11 million, to realise measurable value within months. “Our customers have recognised the potential to use data, to meaningfully improve their clinical, financial and operational business performance outcomes,” said Mike Doyle, Chief Customer Officer.
Formed by a group of healthcare veterans – with a quest to develop a data warehouse that could handle the complexities unique to healthcare data – they revolutionised the clinical process models and use of analytics and discovered the solution now known as Adaptive Data Architecture, which is agile, flexible and can be implemented in a matter of weeks compared to a matter of years.
Today, Health Catalyst helps clinicians in more than 250 hospitals that care for more than 100 million patients each year.
Health Catalyst offers a solution in three parts:
Data Operating System
Cloud-based DOS is a healthcare-specific, open, flexible, and scalable that provides customers a single environment to integrate and organise data.
Analytics applications build on top of the data platform and allow customers to make measurable clinical, financial and operational improvements.
World-class team of analytics and domain experts leverage technology to help customers shorten time-to-value and achieve sustainable, measurable improvements.
The fully integrated data platform and suite of analytics applications helped clients during the pandemic, in ways even Health Catalyst could never have imagined. Health Catalyst offered products and services to support customers’ agile response to the pandemic in four phases:
“By having the data operating system, our clients were able to take advantage of the integrated source of data to meet challenges that they were facing in their local geographies due to the pandemic in ways that we could never even have predicted,” said Doyle.
Doyle highlighted Health Catalyst’s Value Architecture group, which helps the company ensure that its technology and expertise are delivering measurable and meaningful value to our clients. “I think another key differentiator is our open platform that our clients are able to use to accelerate their own integration of data, but it is customisable, configurable in ways that makes it unique for them in ways other cookie cutter analytics just can’t match.
“We like to start every discussion by listening and understanding how we can help our customers avoid making mistakes and getting the most out of their investment in data.”
Speaking about their partnership with Northwell, Doyle said: “We're very grateful for this partnership and want to thank these visionary leaders who are able to envision a future using data that is light years beyond what we can think of today.”