Bumble Inc. will be taken private in a $1.3 billion transaction by the newly established Ithaca Holdings, significantly lower than the company’s valuation at its 2021 public offering, reflecting shifting user sentiment toward dating apps. The agreement, announced Tuesday, values Bumble at $6.05 per share, representing a 138 percent premium over its closing price on the Friday prior to media reports of the pending deal.

The proposed acquisition follows a period of declining enthusiasm for dating platforms, which has impacted Bumble’s market performance since its initial public offering. Ithaca Holdings, formed specifically to facilitate the purchase, will assume ownership once the deal is finalized.

Ithaca Holdings’ co-chief executives Ravi Gupta and John Hegeman are set to lead Bumble as co-CEOs after the transaction closes. Whitney Wolfe Herd, Bumble’s founder, indicated she will maintain an active role within the company following the ownership change.

Initial reports of the sale talks emerged on Monday, indicating advanced negotiations between the two parties. The finalized terms underscore a strategic move to transition Bumble back to private status amid evolving industry dynamics and market pressures.