Match dating unit IPO aims to woo investors

The parent company of dating brands Tinder, Match and OK Cupid wants to play the field.

IAC/ InterActiveCorp said Thursday that it’s planning an initial public offering for its online dating business, the Match Group.

IAC expects to issue less than 20% of its common stock in the offering, which could be completed during the fourth quarter of this year, IAC said in a release.

The Match Group consists of 50 brands and grew 11% last year to reach revenue of $ 897 million. The company as a whole grew 3% during the same period.

“With the transaction, [ the Match Group] will be able to unlock value, a topic that has been in the forefront with the dating business for the last two to three years,” John Blackledge, an analyst at Cowen & Co., wrote in a note to clients. “Match is a market leader in a growing category and should have solid currency with investors.”

Greg Blatt, chairman of the Match Group, said the marriage of established brands with up- and- coming ones would help the company expand.

“The Match Group is poised for substantial growth in the coming years,” Blatt said. “The dating industry has come a long way since its inception, but the category remains underpenetrated. We believe the combination of our more established businesses such as Match, Meetic and OurTime, and earlier stage businesses such as Tinder and OKCupid, creates an attractive combination of significant cash f low generation, strong margins and meaningful growth potential.”

Among the hottest companies in the group is Tinder, a hook- up app that recently hit 8 billion matches, according to company founder Sean Rad.

The West Hollywood company launched a premium service in March in hopes of converting millions of users into paid subscribers. Known as Tinder Plus, the feature enables users to “rewind” if they accidentally reject a potential date.