Deal brings trusted brand and fast-growing presence to Korean
operation
CHICAGO--(BUSINESS WIRE)--
Groupon today announced it has reached an agreement to acquire Ticket
Monster, a leading Korean ecommerce company owned by LivingSocial, Inc.,
for $260 million in cash and stock. The deal is expected to close in the
first half of 2014.
"Ticket Monster is a perfect fit for Groupon as we continue to
transition our business globally from a flash sale email model to a
mobile commerce marketplace," said Groupon CEO Eric Lefkofsky. "Ticket
Monster has a vibrant and growing marketplace in one of the world's
largest ecommerce markets. Coupled with outstanding mobile penetration
and expertise in local, travel, and product, they will help us
accelerate our overall growth, provide immediate scale and serve as a
cornerstone for our operations in Asia."
Ticket Monster -- known locally as TMON -- was founded in 2010 and has
quickly grown into a leading provider of product, local and travel
offers in Korea. TMON has consistently seen year-over-year billings
growth in excess of 50 percent, with annual billings of more than $800
million today. Moreover, approximately half of its sales are transacted
on mobile devices. Based in Seoul, the company has grown to 1,000
employees serving more than 4 million active customers.
"We are incredibly excited to join a company in Groupon that so closely
shares our vision to be an indispensable resource to consumers and
merchants," said Daniel Shin, CEO of Ticket Monster. "Groupon's scale
and expertise in local commerce will pay immediate dividends as we look
to further grow our business and we see tremendous potential in working
together."
The Ticket Monster brand and leadership team will remain in place.
Groupon and TMON will work on an operational plan for the two local
entities once the deal has closed.
Per the terms of the agreement, Groupon will acquire LivingSocial Korea
-- the holding company that owns Ticket Monster. Any non-Korean assets
currently owned by LivingSocial Korea will be divested prior to close.
The agreement is for at least $100 million in cash, and up to $160
million in Groupon Class A common stock, with the final cash and stock
allocation to be determined upon close. The transaction is subject to
regulatory and other customary closing conditions, including approval by
Korean antitrust authorities.
Note on Forward-Looking Statements
This release contains forward-looking statements within the meaning of
the ''safe harbor'' provisions of the Private Securities Litigation
Reform Act of 1995. These statements are based on the current
expectations and beliefs of the Company's management and are subject to
a number of factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The forward-looking statements contained in this Current
Report on Form 8-K include statements regarding the acquisition of
Ticket Monster and other agreements with Ticket Monster and its
employees, including the share purchase agreement described above, and
whether Groupon and Ticket Monster will be able to consummate the
acquisition in a timely manner or at all. These statements are not
guarantees of future performance, involve certain risks, uncertainties
and assumptions that are difficult to predict, and are based upon
assumptions as to future events that may not prove accurate. Therefore,
actual outcomes and results may differ materially from what is expressed
herein. The following factors, among others, could cause actual results
to differ materially from those described in the forward-looking
statements: the risk that Groupon may not realize the anticipated
benefits of the Ticket Monster acquisition, the risk that the Company
may not retain the customer, merchant and vendor relationships of Ticket
Monster, the inability to retain key employees of Ticket Monster, the
inability to successfully integrate the acquired technologies or
operations, and unexpected delays in the consummation of the
acquisition. Groupon urges you to refer to the factors included under
the headings ''Risk Factors'' and ''Management's Discussion and Analysis
of Financial Condition and Results of Operations'' in the company's
Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q, copies of which may be obtained by visiting the company's Investor
Relations web site at http://investor.groupon.com
or the SEC's web site at www.sec.gov.
Groupon's actual results could differ materially from those predicted or
implied and reported results should not be considered an indication of
future performance. You should not rely upon forward-looking statements
as predictions of future events. Although Groupon believes that the
expectations reflected in the forward-looking statements are reasonable,
it cannot guarantee that the future results, levels of activity,
performance or events and circumstances reflected in the forward-looking
statements will be achieved or occur. Moreover, neither the company nor
any other person assumes responsibility for the accuracy and
completeness of the forward-looking statements. The forward-looking
statements reflect Groupon's expectations as of November 7, 2013.
Groupon undertakes no obligation to update publicly any forward-looking
statements for any reason after the date of this release to conform
these statements to actual results or to changes in its expectations
About Groupon
Groupon (NASDAQ: GRPN) is a global leader in local commerce, making it
easy for people around the world to search and discover great businesses
at unbeatable prices. Groupon is reinventing the traditional small
business world by providing merchants with a suite of products and
services, including customizable deals, payments processing capabilities
and point-of-sale solutions to help them attract more customers and run
their operations more effectively. By leveraging the company's global
relationships and scale, Groupon offers consumers incredible deals on
the best stuff to eat, see, do, and buy in 48 countries. With Groupon,
shoppers discover the best a city has to offer with Groupon
Local, enjoy vacations with Groupon
Getaways, and find a curated selection of electronics, fashion, home
furnishings and more with Groupon
Goods. To subscribe to Groupon emails, visit www.Groupon.com.
To learn more about the company's merchant solutions and how to work
with Groupon, visit www.GrouponWorks.com.
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Media Contact
Groupon
Bill Roberts, 312.459.5191
billr@groupon.com
Source: Groupon
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