Daily deals and local commerce site Groupon has announced an acquisition to ramp up its operations in discount offers and specifically those tied to Loyalty Programs. The company has acquired Bristol, UK-based Cloud Savings Company, the owner of Vouchercloud and Giftcloud, in a deal that Groupon said has an enterprise value of $65 million.
Vouchercloud is active in 11 countries and Groupon says its biggest market is the UK, where it has over 5 million subscribers and 12,000 top retailers and brands using its platform. The mobile app is also popular and has clocked up 10 million downloads globally, so this is gonna help the company alot. Cloud Savings Company was already profitable.
We’re pleased to add two great, profitable brands and very talented teams to the Groupon family,” said Groupon CEO Rich Williams in a statement. “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.
“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 a statement. “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.”
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Groupon will be bringing on Cloud Savings’ 100 employees and keeping them based out of their current offices in Bristol. It said that it expects the deal to contribute $5 million to $6 million in Adjusted EBITDA in 2018.
