Groupon buys company for $65 million to grow internationally
Groupon said Tuesday that it acquired Cloud Savings Company Ltd., parent company of online discount code platform Vouchercloud and brand loyalty provider Giftcloud, for $65 million as a way to grow internationally.
"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.