Acquisition to power and enhance Groupon’s international online
discount code and loyalty programs
CHICAGO--(BUSINESS WIRE)--May 1, 2018--
Groupon
today announced it has acquired Cloud Savings Company, Ltd., parent
company of online discount code platform Vouchercloud
and brand loyalty provider Giftcloud,
at an enterprise value of $65 million.
“We’re pleased to add two great, profitable brands and very talented
teams to the Groupon family,” said Groupon CEO Rich Williams. “In
Vouchercloud, we’re acquiring one of the most innovative brands in the
online discount codes space, which we believe will accelerate our own
efforts -- particularly in International -- and broaden our marketplace
for consumers. In Giftcloud, we see interesting long-term potential in
creating attractive customer loyalty programs with some of the biggest
names in retail, as well as with great local merchants.”
For Vouchercloud and Giftcloud, the acquisition represents the
opportunity to continue to develop their growing businesses while
benefiting from Groupon’s local expertise and significant customer and
merchant scale.
“We’re very excited for Vouchercloud and Giftcloud to join the Groupon
family. We recognize the potential in combining our expertise in the
coupon sector to enhance our offerings for consumers in the UK and
beyond,” said Greg Le Tocq, co-founder and director of Cloud Savings
Company. “In joining together, we can create even more -- and more
effective -- ways for customers to save and businesses to grow. We
equally look forward to working with Groupon to grow the Giftcloud
business, as we continue to be at the forefront of innovation while the
gift card industry moves from plastic to digital.”
Groupon expects the deal to contribute $5 million to $6 million in
Adjusted EBITDA in 2018.
Vouchercloud operates in 11 countries -- primarily in the United Kingdom
-- with more than 5 million subscribers and relationships with more than
12,000 top retailers and brands. Their mobile app has been downloaded
more than 10 million times. Groupon intends to maintain the company’s
Bristol headquarters where they employ approximately 100 people.
About Groupon
Groupon (NASDAQ: GRPN) is building the daily habit in local commerce,
offering a vast mobile and online marketplace where people discover and
save on amazing things to do, see, eat and buy. By enabling real-time
commerce across local businesses, travel destinations, consumer products
and live events, shoppers can find the best a city has to offer.
Groupon is redefining how small businesses attract and retain customers
by providing them with customizable and scalable marketing tools and
services to profitably grow their businesses.
To download Groupon's top-rated mobile apps, visit www.groupon.com/mobile.
To search for great deals or 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.groupon.com/merchant.
About Vouchercloud
Vouchercloud is one of the UK’s leading voucher platforms, having
revolutionised the marketplace with the launch of Europe’s first voucher
app in 2010. The app has since been downloaded more than 10 million
times globally, and the site sees 55 million annual visits. The brand
publishes discounts in 11 territories globally and works with over
12,000 retailers to deliver award-winning creative campaigns.
About Giftcloud
Giftcloud is at the forefront of the digital gift card market, launching
in 2014 as Europe’s first entirely digital gifting app and website,
allowing users instant access to digital gift cards while also providing
businesses with a fully digital rewards and loyalty solution. The
business now works with some of the UK’s biggest brands to deliver
bespoke campaigns based on acquisition, loyalty and retention.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and
expectations for the next quarter, the full year or the future are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including statements regarding our
future results of operations and financial position, business strategy
and plans, and our objectives for future operations. The words "may,"
"will," "should," "could," "expect," "anticipate," "believe,"
"estimate," "intend," "continue" and other similar expressions are
intended to identify forward-looking statements. We have based these
forward looking statements largely on current expectations and
projections about future events and financial trends that we believe may
affect our financial condition, results of operations, business
strategy, short-term and long-term business operations and objectives,
and financial needs. These forward-looking statements involve risks and
uncertainties that could cause our actual results to differ materially
from those expressed or implied in our forward-looking statements. Such
risks and uncertainties include, but are not limited to, risk related to
volatility in our operating results; execution of our business and
marketing strategies; retaining existing customers and adding new
customers; challenges arising from our international operations,
including fluctuations in currency exchange rates, legal and regulatory
developments and any potential adverse impact from the United Kingdom's
likely exit from the European Union; retaining and adding high quality
merchants; our voucherless offerings; cybersecurity breaches; competing
successfully in our industry; changes to merchant payment terms;
providing a strong mobile experience for our customers; maintaining our
information technology infrastructure; delivery and routing of our
emails; claims related to product and service offerings; managing
inventory and order fulfillment risks; litigation; managing refund
risks; retaining and attracting members of our executive team;
completing and realizing the anticipated benefits from acquisitions,
dispositions, joint ventures and strategic investments; lack of control
over minority investments; tax liabilities; tax legislation; compliance
with domestic and foreign laws and regulations, including the CARD Act,
GDPR and regulation of the Internet and e-commerce; classification of
our independent contractors; protecting our intellectual property;
maintaining a strong brand; customer and merchant fraud; payment-related
risks; our ability to raise capital if necessary and our outstanding
indebtedness; global economic uncertainty; our common stock, including
volatility in our stock price; our senior convertible notes; our ability
to realize the anticipated benefits from the hedge and warrant
transactions. For additional information regarding these and other risks
and uncertainties, we urge 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 Groupon’s Annual
Report on Form 10-K for the year ended December 31, 2017, and our other
filings with the Securities and Exchange Commission, copies of which may
be obtained by visiting Groupon’s Investor Relations website 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
Groupon 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 the date of this
release. 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20180501005944/en/
Source: Groupon
Groupon
Bill Roberts
(312) 459-5191
press@groupon.com