Groupon, the much talked about daily deal website has acquired its European clone called CityDeal. This acquisition will expand Groupon from US and Canada to 18 more countries including UK, Germany, France, Denmark, Sweden and Finland. This truly reflects the strong funding base Groupon has and reiterates its valuation of being a $ 1 Billion company.
Mashable reports that CityDeal was founded by the same people who earlier formed Alando, a clone of eBay which was later acquired by eBay. CityDeal has 600 employees and will continue to operate as usual until the transition completes. There is no word yet on how much Groupon paid to CityDeal and what were the terms of the payment, but with a recent funding round of $135 Million, we definitely know that Groupon has deep enough pockets to pay a good price.
Groupon uses power of the group to bring a great deal every day to major cities across the US. It is a win-win situation for both the businesses selling their products at a discount as well as the hundreds of people who buy the product at a much lower than regular price. Groupon has been growing pretty rapidly and with this step towards global expansion, they are bound to have an effect on how online retailing works.