Lycos Inc. (Nasdaq: LCOS), said Monday is will buy MetroSplash, owner of Matchmaker.com, a personal classifieds site for about $44 million in cash.
Shares closed at 54 1/8 Friday. The stock has recovered recently after upgrades and good earnings news. Lycos slumped after the company announced a $12.5 billion merger with Terra Networks (Nasdaq: TRRA).
Matchmaker.com has about four million members, and is considered one of the stickiest online dating sites.
The acquisition provides Lycos with an additional subscription revenue source, and is expected to draw advertisers, the company said. The site's use of member profiles gives advertisers access to a highly targeted audience.
Terms of the deal include Lycos' assumption of Matchmaker's stock option plan.
The acquisition is expected to close in Lycos's first fiscal quarter. Matchmaker.com will be relocated from Dallas to Lycos's Waltham, Mass. headquarters.