Media and internet company IAC will spin off all of its shares of online dating company Match Group. Match Group owns Match.com, Tinder, Hinge, and OKCupid.
Under the terms of the deal, Match shareholders would receive one share of New Match and $3 per share in consideration. IAC shareholders would receive $3 per share in cash.
IAC currently owns more than 80% of Match.
In a statement, IAC said the deal would capitalize IAC to pursue new opportunities and enable management to focus on undervalued assets while giving Match Group increased strategic flexibility, enhanced trading liquidity, and the eligibility for index inclusion.
“We’ve long said IAC is the ‘anti-conglomerate,’ we’re not empire builders,” IAC chairman Barry Diller said in a statement. “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.”
In October, IAC said it had submitted a proposal to Match’s board regarding separation of the companies.
In August, the company said it was considering spinning off Match and ANGI Homeservices, the parent company of Angie’s List and HomeAdvisor.
IAC will continue to own Angie’s List, Ask.com, College Humor, Vimeo, and news site The Daily Beast.
The transaction is expected to be tax free and to close in the second quarter of 2020.
Shares of IAC were up more than 7% in midday trading Thursday. Shares of Match were up 7.5%.
Match Group shares are up more than 65% this year on strong growth from Tinder, Hinge and OKCupid.