United States two Group purchase site to merge, CrowdSavings640 million was bought

According to foreign media reports, the source revealed in Monday, the United States two unknown group buying sites have been merged. Half off depot will spend 6.4 million of dollars in cash and shares to buy another group buying website Crowdsavings.

It is reported that after the completion of the transaction, two group buying site will be renamed Ncrowd, headquarters will be set up in the outskirts of Atlanta. Although the new Ncrowd still cannot rival Groupon or LivingSocial on a scale, there are still two notable areas of the deal. First, the two companies that have already completed 19 mergers and acquisitions have accounted for a large share of the deals in the US online buying market. Second, when the online group buying industry is in a slump, it is not easy to complete such a deal.

In the past year, despite the challenges of thousands of innovative companies, Groupon has become a well-deserved leader in the online buying market. Groupon's persistence proves that it's easy to replicate online group buying, but it's a lot harder to scale. Even Groupon is struggling to prop up the situation.

Finding a buyer has become increasingly difficult for group-buying sites that still exist. In 2011, for example, there were 63 purchase sites in the United States, but in 2012 the number had fallen to 28. So far this year, only one group buying site has been acquired. Among these deals, JPMorgan Chase spent $35 million on Bloomspot last year.

Even if half off depot acquired Crowdsavings, the size of the new company's buying market in the US is still very limited. The new company, Ncrowd, will have 20 million registered users and offer email group services in 17 markets. The total number of employees in the new company is 70.

Half off depot used about 6.5 million shares and 1.5 million dollars in cash to buy crowdsavings, sources said. "We're going to compete with Groupon, but we're used to competing with 600 group buying sites," said Brian Conley, chief executive officer of Half Depot, chief executive of new company Ncrowd. Compared with the past, the number of purchase sites left is not much. "The four-year half off depot remains in the market by expanding the business to help businesses participate in Facebook competition, helping them to improve their customer retention," says Conley.

Crowdsavings was once a frequent buyer in the online buying market. Since its inception, the company has acquired 15 companies. But the crowdsavings deal is less than the size of the target, with each transaction involving 100,000 to 400,000 dollars.

Whether Ncrowd will be able to overtake Groupon in its future size, Conley is not. He said, "Who knows what the future will be?" I will not predict whether we can defeat the problem of the fastest growing company in the history. But we do believe that we offer a unique value position for the merchant. Once our services have been recognized by our customers, we will begin to flourish. ”