Social discovery site MeetMe has executed a definitive agreement to acquire Skout, a mobile app for meeting new people, for roughly $54.6 million; $28.5 million in cash and approximately 5.37 million shares in the social discovery company.

According to Geoff Cook, CEO of MeetMe, the combination “provides a pathway to $100 million in revenue in 2018 with adjusted EBITDA margins approaching 45 percent.”

Skout is expected to remain a separate brand and standalone mobile application following the closing of the acquisition, with the company’s headquarters continuing to remain in San Francisco, CA. Skout founders Christian Wiklund and Niklas Lindstrom will assist with the transition for one year after the closing.

Canaccord Genuity is serving as financial advisor and Morgan Lewis & Bockius is serving as legal counsel to MeetMe.

[Image courtesy: Skout]