Chicago-based daily deals website Groupon announced on Monday that it acquired New York-based flash fashion site Ideeli. The deal is valued at $43 million in cash. Under the terms of the acquisition, Ideeli will still operate as a website separate from its buyer, according to Inc.
The purchase highlights the importance of mobile to sellers. Aside from its fashion portfolio, Ideeli's strength is in its mobile business. The acquisition is also part of Groupon's overall strategy to boost its ranking in the binge shopping list. In addition, the daily deals company is looking to compete with Amazon and other retail businesses, the report noted.
In a press release for the Ideeli purchase, Groupon chief Eric Lefkofsky said the fashion seller will help his firm be "the place you start when you want to do or buy just about anything, anytime, anywhere," the report stated.
However, Ideeli was said to have difficulty attracting additional funding after a $12-million raise last summer. Experts speculated that it fell into trouble once shoppers got tired of flash sales, said the report.
For the time being, Ideeli will remain in its New York office. The company is offering a 20% slash on all its items online until January 14, Inc reported.
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