Blackstone to buy stake in MagicLab in $3bn deal

Blackstone is currently deploying its flagship Blackstone Capital Partners VIII vehicle, which closed on $26bn in September 2019.

MagicLab founder Andrey Andreev will step down and sell his stake as part of the transaction. Andreev will be replaced by Whitney Wolfe, previously CEO of Bumble.

Blackstone plans to develop the company's brands and platforms following the transaction.

Citi Global Capital Markets has provided financing for the acquisition. The company's annual revenue run rate stands at around $500m, according to a report by the Financial Times.

Company
Founded in 2006, MagicLab operates dating and networking brands including Bumble, Badoo, Lumen and Chappy. Based in London, the company also operates offices in Moscow, Valletta and Austin. For 2018, Bumble reported revenues of £86m and operating profit of £30m, and Badoo reported revenues of £37m and operating profit of £2.5m.

People
Blackstone – Jon Korngold (head of Blackstone Growth); Martin Brand (senior managing director).
MagicLab – Andrey Andreev (founder); Whitney Wolfe (CEO).

Advisers
Equity – Simpson Thacher & Bartlett (legal).
Company – Citi Global Capital Markets (corporate finance); Baker McKenzie (legal).
Management – Davis Polk & Wardwell (legal).

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• Topics
• Buyouts
• UK / Ireland
• Technology
• Blackstone Group
• United Kingdom
• Citigroup
• Davis Polk & Wardwell
• Baker McKenzie