According to this press release, online global career matching company Monster Worldwide has acquired privately held Tickle for approximately $95 million in cash and stock. Particulars of the deal say Monster paid $29.5 million in cash, a $40 million deferred performance-based payment payable over three years in cash, and one million shares of Monster Worldwide common stock to Tickle shareholders. Based on Monster’s closing price of $24.38, that equates to roughly $25 million in stock.
For those who don’t know what Tickle does, it provides career and relationship assessment tests, tools for self-discovery, and a social networking service. Unlike other social networking companies such as Friendster or Tribe Networks, Tickle has been profitable since early 2002 and, most recently, booked $25 million in trailing 12 month revenue.
Quite frankly, the deal makes sense, for both companies. I figured Tickle would make a good fit for any larger company. In fact, last week, I thought it might make a good fit for Google to bolster its own social networking service technology and greatly increase its user base. However, it makes even more sense for Monster Worldwide.