Match.com, which is owned by IAC/InteractiveCorp. (NASDAQ: IACI), has certainly been a big-time winner. It has a dominant brand, massive customer base and lots of cash flow. For example, in 2006, revenues increased 25% to $311.2 million.

The problem is that the online dating market is getting pretty saturated in the US.

So, as should be no surprise, Match.com is expanding into foreign territory. Today, the company announced that it is purchasing eDodo (China) and Netclub (France).

Of the two, the deal for eDodo looks to be the better one. The site has 180,000 paid members and is attracting 3,000 new ones every day. Of course, the market opportunity is massive with about 64 million online singles in China.

For the most part, Match.com has been growing its business organically. But, that's no easy feat. After all, dating certainly has its cultural nuances. Thus, buying online market leaders is a good idea (even if the valuations are at premium prices).

Expect more dealmaking in 2007.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.