Udate, Kiss.com get hitched for Valentine's Day

Online dating service Udate.com has found the perfect match. The company Wednesday announced it is acquiring one of its most profitable competitors, the privately-held Kiss.com. The cash-and-stock deal, worth about $17.7 million at Tuesday's share price, is expected to close later this quarter, Udate CEO Mel Morris said.

With the addition of Kiss's 2.1 million users, Udate will have a total of more than 3.3 million registered members, with subscription revenue of more than $1.2 million per month, Morris said. Both companies focus on the English-speaking world, but have plans for internationalization over the course of 2001, he said.

Udate will continue to operate both Web sites under their own names, because they have somewhat different business models, said Morris. Udate is "very much an online matchmaker. We provide instant communication in a very quick manner. You could join our site, in a space literally of 5 minutes you could be communicating with five or 10 women."

Kiss, on the other hand, is "much more the traditional picture personals - very systematic and steady, continuing to grow at around 8% or 9% per month." Udate, he added, charges a significantly higher subscription fee than Kiss.

The two companies have been cooperating since December on sharing resources and directing users to each other's sites, said Morris. "We've had tremendous results, and no increased costs in marketing."

Udate, which was founded 13 months ago, announced earlier this week that it had reached "monthly profitability," with January revenues of $672,466 and profit of $42,406. The company did not provide quarterly or annual figures.

Udate's shares on the NASDAQ exchange closed Tuesday at $2.03, up 8.3% for the day.

Udate, in New York, is at www.udate.com/. Kiss, in Seattle, Wash., is at www.kiss.com/.

The IDG News Service is a Network World affiliate.