Groupon acquires flash sale site Ideeli for $43 million
Coupon-selling site Groupon has acquired Ideeli, a flash fashion retailer, for the bargain price of $43 million – a price that is not likely to impress investors who have invested $107 in the company since it was founded in 2007.
Much like competitors Gilt, Rue La La or Haute Look, Ideeli sells designer goods via timed sales, though until now the site has yet to generate a profit using this increasingly popular e-commerce model.
Groupon CEO Eric Lefkofsky, however, sees potential in the company. He says: "Ideeli extends our fashion presence and brings great relationships with many of the top brands in apparel.
Ideeli will continue to be run as a separate site and will maintain its headquarters in New York. On the acquisition, Ideeli CEO Stefan Pepe commented:"Groupon's brand, reach and vision as an ecommerce destination make it a tremendous place to continue to grow our company."
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