Spark Networks shareholders have approved an increase to share capital which will aid the online dating company’s acquisition of Zoosk.
A general meeting was held at the Spark Networks headquarters in Berlin on Monday, and attendees voted by 99.9% in favour of the proposed plans, offering resounding support to the purchase.
New shares will now be offered to existing Zoosk shareholders in return for their stake. Spark Networks representatives believe it will result in a two-fold increase in scale, a key step to growing profitability.
Zoosk CEO Steven McArthur was elected to the Spark Networks administrative board along with Deepak Kamra from Canaan Partners, a leading provider of online advertising solutions.
Spark Networks’ acquisition of Zoosk is expected to be wrapped up in early Q3. The deal, which is worth $255 million, will see Spark become the second largest dating company in North America behind Match Group.
The price of Spark stock jumped by approximately 60% around the time that acquisition news broke. However, it has since been slowly declining and currently sits at $11.98, giving the company a market cap of just over $150 million.
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