Scotland business

Edinburgh online dating company Cupid raises £12m

Couple holding hands
Image caption Cupid owns a number of dating websites in the US and UK

Scottish online dating company Cupid is raising £12m through the placing of shares on the stock market.

The Edinburgh-based firm said the move would be used to pursue an acquisitive growth strategy.

Cupid said it was reviewing a number of potential opportunities in Europe, including in France and Germany, and expected to make an announcement in due course.

Last month it announced a 202% increase in revenue to £25.7m for 2010.

A total of £7m is being raised through founders Bill Dobbie and Max Polyakov selling some of their holdings, while £5m is coming from placing new shares. The placements are being underwritten by brokers Peel Hunt.

Bill Dobbie, Cupid's chief executive, said: "We remain delighted with Cupid's progress and this placing will enable us to continue our acquisitive strategy and further strengthen our position.

"Trading remains exceptionally strong with revenues in the first quarter of the financial year reaching record levels since the company commenced trading.

"We have identified a number of new opportunities that we believe will enable us to continue our strong growth and international expansion."

Cupid bought the rights to use the US web domain flirt.com for £800,000 towards the end of last year.

The company's sites include datetheuk.com, cupid.com, datingforparents.com and benaughty.com. They also host dating sites for other companies.

It listed on London's Alternative Investment Market in June 2010.

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