Groupon acquires Cloud Savings Company for US$65million

Groupon has revealed it has acquired Cloud Savings Company to build its loyalty programme at an enterprise value of US$65million.

Cloud Saving is the parent company of the online discount code platforms Vouchercloud and brand loyalty provider Giftcloud.

The acquisition came to light because of the e-commerce marketplace wanting to build loyalty programmes for brands and retailers who are currently using the platform.

Now, when users access Vouchercloud, they will be directed to Groupon’s offers on its platform.

For Vouchercloud and Giftcloud, the acquisition will help develop their growing businesses while benefiting from Groupon’s merchant and customer scale.

Groupon expects the deal to contribute US$5million to US$6million in Adjusted EBITDA in 2018.

Written by Leah Alger