Match Group, Inc. · NASDAQ:MTCH
Match — IAC/InterActiveCorp — Merger or Acquisition (December 2019)
16 slides from Match's merger presentation, Dec 19, 2019
Slide 1: No Offer or Solicitation / Additional Information and Where to Find It
2 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 NO OFFER OR SOLICITATION / ADDITIONAL INFORMATION AND WHERE TO FIND IT This communication is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, o
Slide 2: Benefits of Transaction
3 Benefits of Transaction 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Eliminates dual class structure Enhances trading liquidity Increased strategic flexibility Effective debt-financed stock repurchase Enables index eligibility Gives IAC shareholders direct ownershi
Slide 3: Illustrative Pro Forma Value and Net Debt at Close
4 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Note: Illustrative based on current market values as of December 17, 2019. Actual values to be determined at closing. Assumes Match Group public shareholders all elect to receive $3 per share consideration in cash and ex
Slide 4: Transaction Overview
5 Transaction Overview 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Structure Separation of IAC and Match Group into two independent public companies (“New IAC” and “New Match”), with IAC shareholders receiving a direct ownership interest in New Match proportionate t
Slide 5: Transaction Overview: Stock Options, Real Estate, Tax Attributes, Governance
6 Transaction Overview 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Stock Options Outstanding IAC stock options to be split into New IAC (~30%) and New Match (~70%) awards based on the companies’ relative valuation at closing Results in Match Group assuming ~11M opti
Slide 6: Potential Transaction Adjustments for IAC
7 Potential Transaction Adjustments for IAC 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Pre-Transaction Transaction Adjustments Pro Forma Projected Cash Balance at 6/30/20 $2.2B $0.7B $2.9B Debt $1.7B ($1.7B) $0.0B Match Group Shares Owned by IAC / New Match Shares
Slide 7: Potential Transaction Adjustments for Match Group
8 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Potential Transaction Adjustments for Match Group Pre-Transaction1 Transaction Adjustments Pro Forma Projected Cash Balance at 6/30/20 $0.6B ($0.3B) $0.3B Debt (Including Face Value of Exchangeables) $1.6B $2.2B $3.8B Ne
Slide 8: Match Group Committed to Delevering
9 Match Group Committed to Delevering 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 No change to Match Group commitment to invest in organic growth as top priority Near-term priority to de-lever; share repurchases to be opportunistic Flexibility for opportunistic M&A
Slide 9: Appendix
10 Appendix 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230
Slide 10: Transaction Structure Overview
11 Transaction Structure Overview 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Exchangeables Vimeo, Dotdash, Applications, Emerging & Other IAC Shareholders MTCH public shareholders ANGI public shareholders Vimeo, Dotdash, Applications, Emerging & Other IAC Sharehold
Slide 11: Illustrative Exchange Ratio Calculation
12 Illustrative Exchange Ratio Calculation 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 ($ and share count in millions, except per share data) Note: Illustrative based on current market values as of December 17, 2019. Actual values to be determined at closing. Assume
Slide 12: Match Group Debt Capital Structure
13 Match Group Debt Capital Structure 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 ($ in millions) Illustrative Pro Forma Capitalization Table Debt Maturity Profile (Excluding New Debt) Note: Market data as of December 17, 2019. Assumes Q2 2020E LTM Adj. EBITDA of $0
Slide 13: Exchangeables and Related Hedging Instruments: Illustrative Conversion from IAC to Match
14 Exchangeables and Related Hedging Instruments: Illustrative Conversion from IAC to Match 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 (share count in millions) Note: Illustrative based on current market values as of December 17, 2019. Actual values to be determine
Slide 14: Exchangeables Collar Calculation
15 Exchangeables Collar Calculation 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 IAC shareholders’ stake in New Match to be reduced by the fair market value of the Exchangeables, divided by Match Group stock price VWAP For purposes of that calculation, the Match Grou
Slide 15: Bridge to Pro Forma Match Group Shares Outstanding
16 Bridge to Pro Forma Match Group Shares Outstanding 123.141.159 74.71.66 0.51.102 217.225.242 255.255.153 252.228.214 230.230.230 Note: Illustrative calculation assumes Match Group share price as of December 17, 2019 close. 1 Excludes potential dilution from Exchangeable Notes due 2027 and 2030 be
Slide 16: Bridge to Pro Forma Match Group Shares Outstanding
ee ie Bridge to Pro Forma Match Group Shares Outstanding Fully Diluted Shares Outstanding Shares Effectively Forfeited by IAC for Net Liabilities + Options Assumed from IAC (~11M gross, calculated using Treasury Stock Method) + Real Estate for $120M in Match Shares {share count in milions) Current T
IAC/InterActiveCorp — Merger or Acquisition (December 2019) on 6ix