Oppenheimer Comments On IAC/InterActive Acquisition

According to Oppenheimer, IAC/InterActiveCorp IACI announced a voluntary public tender offer for all of the outstanding shares of Meetic S.A. at 15.00 euro per share in cash, a 12% premium to Friday's close. Oppenheimer said that Meetic is the European leader in online dating, operating in 16 European countries and 13 languages, with a business similar to IACI's Match.com. “As IACI already owns 27% of Meetic shares, and Meetic's CEO will hold 7%, IACI's net cash cost is $273M. IACI's 1Q cash balance was $1.2B. Using consensus 2011E EBITDA of $59M, we estimate the transaction is 6% accretive to IACI's EV/EBITDA. We also see margin upside over time, as Meetic's 19% OIBA margin is below Match's 31%. Last, this creates a possible public vehicle for Match.com.” IAC/InterActiveCorp closed on Friday at 35.22.