Ithaca to Acquire Bumble for $1.3 Billion at 138% Premium

Ithaca Holdings has agreed to acquire Bumble for $1.3 billion in cash, according to a statement issued by law firm Kirkland & Ellis, which is advising Ithaca.

Bumble Class A shareholders will receive $6.05 per share, representing a premium of nearly 138% over the closing price on October 9 prior to the announcement of the deal.

Bumble's Board of Directors approved the transaction based on the recommendation of a special committee, with founder Whitney Wolfe Herd recusing herself from the vote.

Ithaca Co-CEOs Ravi Gupta and John Hegeman will become Co-CEOs of Bumble upon completion of the deal, taking the company from the stock market into private ownership.

What do these terms mean?

Acquisition: The purchase of a company or a controlling stake in it from its current owners.

Price Premium: The increase in the offer price over the market share price before the deal's announcement.

Going Private: A listed company exiting the stock exchange to become owned by investors without public trading.

Class A Shares: A class of shares that grants its holders specific voting or dividend rights, and is often held by the public.