Groupon acquires European competitor CityDeal
Groupon has expanded operations from two countries to eighteen overnight with its acquisition of Germany-based clone CityDeal. Financial terms of the deal between the world’s leading collective coupon buying platform and its European rival have not been released, but sources close to the deal put the transaction sum at a “3-digit-million figure.”
Groupon CEO Andrew Mason explained why the company went with CityDeal over other European clones:
“We knew that bringing Groupon to Europe wouldn’t be easy. Just adapting Groupon to suit the differences between Miami and Philadelphia is enough of a challenge that we knew we wouldn’t be able to succeed in Europe without amazing entrepreneurs with an intimate understanding of the local cultures.
With that in mind, we started meeting with the horde of European Groupon clones, looking for a team that would do Groupon justice in Europe. Unfortunately, we found them to be very much like the American knockoffs – without the strategic vision or operational chops to do much more than watch us and play Simon Says…
…It was no wonder they’d become #1 in every one of their countries – in only five months, they’d even become larger than the largest Groupon knockoff in the U.S. It’s absolutely insane how quickly they’ve scaled, with 600 employees working from 80+ European cities, and already saving their customers over $5 million in April alone – their fourth month of operation.
Culturally, we saw the same qualities in the Citydeal team that we have at Groupon. Hardworking and scrappy, blindingly fast executors, refreshingly blunt, no appetite for petty politics, and passionate about pioneering a new model of commerce while wowing every last consumer and merchant they touched.”
Full story at TechCrunch.
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