Groupon, the deal website operator, announced news on Tuesday (May 1) that is buying Cloud Savings Company, the parent company of online discount code platform Vouchercloud and brand loyalty provider Giftcloud.
In a press release, the company said it acquired the company 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 a press release. “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.”
According to Groupon, for Vouchercloud and Giftcloud, the acquisition will enable them to continue to develop their businesses, which are in growth mode, and at the same time take advantage of Groupon’s expertise in the local markets and its customer and merchant knowledge.
“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 U.K. and beyond,” said Greg Le Tocq, co-founder and director of Cloud Savings Company, in the same press release. “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 said it expects the acquisition to contribute between $5 million and $6 million in adjusted EBITDA during this year. Currently, Vouchercloud operates in 11 countries, with its main focus in the U.K. According to Groupon, it has more than 5 million subscribers and relationships with more than 12,000 retailers and brands. The company’s mobile app has been downloaded more than 10 million times. Groupon intends to maintain the company’s Bristol headquarters, where it has around 100 employees, noted Groupon in the press release.