Groupon says its focus is on the bottom line, rather than top-line growth.
Groupon, which offers daily deals on food and entertainment in major cities, has been busy lately. The company announced today it has purchased Berlin-based Citydeal, which offers services similar to Groupon’s in 16 countries. And last week Groupon opened an office in Silicon Valley that will focus on mobile and business intelligence.
Citydeal offers discounts in 80 markets. The acquisition will put Groupon in 18 countries and 140 cities, Groupon says.
Citydeal, which Groupon says saved its 1 million subscribers more than $5 million in April alone, is less than a year old. Launched in November by a group of European entrepreneurs, including the Samwer Brothers, founders of eBay Europe, the site first operated in Berlin but has expanded to the U.K., France, Spain, Italy and other major European countries. It employs more than 600 people.
"The name Groupon is synonymous with social commerce," said Daniel Glasner, Citydeal co-founder. "We are excited to be joining forces with what is emerging as one of the great global Internet brands."
Citydeal will transition to the Groupon brand name and site design in the next few months, says Groupon.
In addition to the acquisition, Groupon also opened an office in Silicon Valley that will focus on mobile and business intelligence. Groupon says it chose the location because it wants to attract the technology talent in the area.