Dublin businessman Stephen Mulcahy has sold an Australian online dating business for 38.92 million Australian dollars (€24.2 million) to media group Fairfax, owner of the Sydney Morning Herald.
Mr Mulcahy, a son of Phoenix magazine founder John Mulcahy, established the RSVP.com.au business in Sydney in 1995. With more than 600,000 members, the company claims its website has been instrumental in more than 890 weddings and at least 137 babies.
While Mr Mulcahy could not be contacted last evening, he is believed to have realised about €9.6 million through the sale of his shares. He owns a number of other businesses, including Access Gaming Systems in Bray, Co Wicklow, which creates online games for national lottery operators.
It is believed his interests in RSVP Personals International Ltd, the Irish company that sold the Australian business, are held in an Isle of Man-based trust account with Anglo Irish Nominees (Trust) Ltd.
Records in the Companies Office for RSVP Personals International suggest that Mr Mulcahy's brother, Jack, realised about €2.88 million while another brother, Aengus, made €2.27 million on the deal.
The records also suggest that a Melbourne-based entity, JGL Investment, owned by RSVP director and Australian businessman Justin Liberman, realised €8.35 million.
John Fairfax Holdings went public with the deal last Monday, making clear in a statement that it had acquired RSVP from its original founders.
RSVP is the market leader in the Australian online dating sector and has been growing at about 30 per cent per annum.
Fairfax said the business was expected to generate earnings before interest, tax, depreciation and amortisation of A$4 million, excluding synergies, in the 2006 financial year.
"RSVP has solid revenue growth, high margins and strong cash flow generation.
"Online dating has become a mainstream classifieds market, just like jobs, houses and cars," said Fairfax chief executive Alan Revell.
Fairfax intends to generate additional business for RSVP by distributing the service alongside other classified advertising channels.
Mr Revell said RSVP's demographic was similar to the strong AB reach of many of its newspapers.
