MeetMe Inc (NASDAQ:MEET) has allocated $60 million in its acquisition plans for If Inc, a social technology firm headquartered in San Francisco. The social discovery firm that has a portfolio of dating, meet-up and chat apps will acquire If Inc and two of its brands – hi5 and Tagged. If Inc’s brands have a presence in more than 100 nations and are available in a total of 15 languages.

Part of the $60 million will be sourced from the company’s cash holdings. JPMorgan Chase will also lend the social discovery firm about $30 million. There will also be other sources of funding for the deal.

Grow revenues and user numbers

The goal of the acquisition is to grow the revenue base by increasing MeetMe’s user numbers as the count of active users will now rise to more than 10 million. The deal will ensure that hi5 and Tagged not only get to keep their distinct identities but If Inc will also maintain its San Francisco headquarters. This will give MeetMe a West Coast presence.

Of the 100 employees that If Inc had, 87 will be get to keep their jobs but 13 will be laid off following the acquisition. The CEO of If Inc, Dash Gopinath, has agreed to stay on for 12 months to assist with the company’s transition.

Not the first time

Geoff Cook, MeetMe’s chief executive, said the acquisition puts the new entity on the path to achieving annual revenues of $150 million. In 2016 If Inc recorded yearly revenues of $44 million.

“We believe this combination provides a clear pathway to $150 million in annualized revenue with adjusted EBITDA of $50 million for our combined company,” said Cook.

If Inc is not MeetMe’s only acquisition in the recent past. Last year MeetMe acquired Skout, an app for social discovery at a price of $55 million. The acquisition was through stock and cash and its success is believed to have contributed to MeetMe going on a similar quest with If Inc.

In Tuesday’s trading session, shares of MeetMe Inc shot up by 16.17% to close the day at $5.89.