"Ithaca" to Buy "Bumble" for $1.3 Billion and Take It Private

Ithaca Holdings has agreed to acquire Bumble for $1.3 billion in cash, at $6.05 per share, according to a company statement published on its investor relations page.

This price represents a premium of about 138% over the October 9 closing price unaffected by the deal announcement, giving current shareholders a significant gain upon completion.

The deal was approved by a special committee of the company, along with written approval from Blackstone-affiliated entities and founder Whitney Wolfe Herd. Bumble is scheduled to go private while maintaining its headquarters in Austin.

Ithaca Co-CEOs Ravi Gupta and John Hegeman will become Co-CEOs of Bumble, meaning the transaction transfers total leadership of the company to the new owner.

What do these terms mean?

Acquisition: One company purchasing another, transferring its ownership and management to the buyer.

Price Premium: The difference between the price offered in the deal and the share price in the market prior to its announcement, usually measured as a percentage.

Going Private: The cessation of trading of a company's shares on the stock exchange after a single owner or group purchases it, making it a private company once again.