Online bargain site LivingSocial is reportedly buying French daily deal site Dealissime.com, according to several sources.
In an effort to compete with Groupon in France, the Washington-based LivingSocial announced on Wednesday that it was buying Dealissime and an online display advertising company founded by a former Google executive, SocialMedia.com, the AFP reported.
LivingSocial co-founder and chief executive Tim O’Shaughnessy told the AFP that LivingSocial “looks for companies that have similar values and ways of working.”
Financial details of the acquisitions have not been disclosed, but two industry sources put the value of the deal at $5 million to $7 million, according to Business Insider.
Dealissime co-founder and CEO Lara Rouyrès told Business Insider the start-up has 20 employees and is experiencing “two-digit percent month-over-month growth.” The startup has had $1.8 million in gross merchandise sales, the report said.
Dealissime was founded by Rouyrès and Tatiana Jama and LivingSocial said the company’s current team will remain in place, according to the AFP.
Rouyrès told Business Insider the concept of such an acquisition occurred when the start-up went for a round of funding in February.
“LivingSocial wants to spend ‘a lot a lot of money’ to build up its presence in France, which is Groupon’s biggest international market. Their goal is to be the biggest daily deals site in France by this time next year,” the report said.
In late 2010, Google attempted to purchase Groupon, but the deal quickly fizzled, according to reports.
Groupon claims roughly 20 million subscribers and covers some 300 cities throughout the globe. The success of the site has been so far-reaching; Groupon began offering training programs for businesses overwhelmed by the number of customers generated by its offers.
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