Groupon Goes High Fashion

Source: http://www.flickr.com/photos/diloz/

Groupon Inc. (NASDAQ:GRPN) on Monday¬†announced¬†that it acquired fashion flash deals website ideeli for $43 million in cash. The move will help boost Groupon’s presence both in fashion and mobile.

Ideeli offers huge flash discounts on designer clothing for men and women, as well as home goods. The site, one of the largest for flash sales of fashion items, was founded in 2007 and is based in New York. According to the companies’ press release, the site will continue to operate on its own.

“We are thrilled to add ideeli and their team to our company,” said Groupon CEO Eric Lefkofsky in the announcement. “Ideeli extends our fashion presence and brings great relationships with many of the top brands in apparel. Our customers have a demonstrated appetite for these offers, and by broadening our reach in this space Groupon is even better positioned as the place you start when you want to do or buy just about anything, anytime, anywhere.”

“Groupon’s brand, reach and vision as an e-commerce destination make it a tremendous place to continue to grow our company,” said ideeli CEO Stefan Pepe. “We look forward to bringing the great deals we offer to Groupon customers.”

The companies are celebrating the acquisition by offering 20 percent off any ideeli purchase through Tuesday.

Groupon had a successful holiday shopping season, but its stock is still trading far below its initial public offering price. While daily deals websites had an initial surge in popularity, consumers began turning away as daily deals flooded their email inboxes. Groupon has updated both its website and mobile platform to make it easier for consumers to find the deals they want.

The growth in high fashion items through the ideeli acquisition will help customers snag designer clothing at steep discounts, something that will surely appeal to Groupon’s deal-hungry audience.

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