Groupon has acquired Cloud Savings Company (CSC), the owner of online digital voucher platforms Vouchercloud and Giftcloud, in a deal worth $65 million.
Co-founder and director of the acquired firm, Greg Le Tocq, commented that “joining together” their expertise in the coupon sector will enhance the two firm’s offering in the UK and beyond.
For the Chicago-based e-commerce giant, the deal is expected to contribute $5 million - $6 million in adjusted EBITDA in 2018, while Vouchercloud and Giftcloud will continue to develop their businesses benefiting from Groupon’s local expertise and significant customer and merchant scale.
“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.”
Voucher space pioneers
The two acquired brands are pioneers in the European voucher and gifting space; Vouchercloud launched as the region's first voucher app in 2010, while Giftcloud - with aims to move the gift card industry from “plastic to digital” - represents the first entirely digital gifting app and website.
Williams added that Giftcloud holds “long-term potential” in contributing to attractive customer loyalty programmes with “some of the biggest names in retail”.
Based in Bristol and originally co-founded by Matthew Wood (founder of PerformanceIN), Vouchercloud now operates in 11 countries worldwide, with over five million subscribers and relationships with more than 12,000 top retailers and brands. The voucher publisher also has an established mobile presence, claiming its app has been downloaded more than 10 million times.
CSC’s buyout today follows its own acquisition of Invitation Digital - the former parent company of Vouchercloud and Giftcloud - in January this year, following a management buyout from the Vodafone group.
At the time of the earlier deal, CSC chairman Scott Davidson said the deal represented a “new era of independence for the business and unlimited opportunity for further growth”.
According to today’s announcement, Groupon intends to maintain CSC’s Bristol headquarters, where they employ approximately 100 people.