Acquisition to Help Accelerate Company’s International Growth
Mountain View, CA – October 12, 2011 – Coupons.com Incorporated, the recognized leader in digital coupons, including online printable, social, mobile and loyalty card promotions, today announced the acquisition of the remaining 50 percent ownership of its UK joint-venture Couponstar Ltd, the European leader for digital coupons promotions. The announcement comes on the heels of a $200-million investment in Coupons.com by institutional investors.
Based in the UK and focused on the European market, Couponstar was founded in 2002 with the goal, like Coupons.com, to convert the paper-dominated coupons and voucher industry to digital. Couponstar provides secure digital coupon (and voucher) solutions for fast moving consumer goods manufacturers (FMCG) and supermarket retailers across Europe. They also provide the leading destination for printable coupons in the UK available at www.beforeishop.co.uk. The company has executed campaigns for leading FMCGs in over a dozen European countries and Australia. Couponstar will rebrand to operate in the UK and Europe as Coupons.com.
“The sum total of our two companies is greater than their individual values,” said Steven Boal, CEO of Coupons.com Incorporated. “Together, we can further accelerate our common goal to move the coupon and voucher industry to digital and help more brands engage with more consumers, everywhere across the digital domain.”
“Part of the use of proceeds of our recent capital injection was for international expansion, and so we are happy to put those funds to work and acquire the other shares of Couponstar,” continued Boal. “Owning 100 percent of the business gives us a great footprint from which we can accelerate our international growth.”
The use of digital coupons and vouchers in the UK and Europe continues to grow at a dramatic pace. More brands are using digital coupons as a means to engage with shoppers online and to move product off retailer’s shelves, and more consumers are turning to digital—websites, social media, mobile, etcetera—for money-saving offers. In fact, 57 percent of UK consumers have printed a coupon from the Internet for use when supermarket/grocery shopping. Digital vouchers are also 31 percent more likely to be redeemed than other types of coupons.*
“The acquisition of Couponstar positions Coupons.com as an even greater, and growing force in couponing, and everyone will benefit, including brand marketers and consumers, alike,” said Jared Keen, co-founder and managing director of Couponstar. “The combined resources of the two companies will enable us to continue to deliver innovative, secure couponing solutions and increase our presence and service in Europe with more employees and new offices in local markets to service consumers and marketers.”
Looking forward, Coupons.com and Couponstar will focus strongly on merging into a single global brand and building upon their existing technology base, to develop new sales and media innovation in areas that include social couponing and loyalty card couponing for the every-day consumables market.
* Survey conducted by YouGov in April 2011