“Ticket Monster is a perfect fit for Groupon as the latter continues to make a transition from a flash sale email model to a mobile commerce marketplace”
Groupon, one of the leaders in local commerce search, has announced an agreement to acquire Korean e-commerce company Ticket Monster, owned by LivingSocial Inc. The deal worth US$260 million – cash and stock – is expected to close in the first half of 2014.
Founded in 2010, and locally known as TMON, Ticket Monster offered product, local and travel offers in Korea, and claims to have seen year-over-year billings growth in excess of 50 percent, with annual billings of more than $800 million. Approximately half of its sales are transacted on mobile devices.
“Ticket Monster is a perfect fit for Groupon as we continue to transition our business globally from a flash sale email model to a mobile commerce marketplace,” Eric Lefkofsky, CEO, Groupon, was quoted as saying in an official release.
Based in Seoul, and with over 1,000 employees, TMON claims to serve more than four million active customers.
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“Ticket Monster has a vibrant and growing marketplace in one of the world’s largest e-commerce markets. Coupled with outstanding mobile penetration and expertise in local, travel, and product, they will help us accelerate our overall growth, provide immediate scale and serve as a cornerstone for our operations in Asia,” Lefkofsky added.
With Groupon’s presence in 48 countries, Daniel Shin, CEO, Ticket Monster, is “incredibly excited” with the deal. “Groupon’s scale and expertise in local commerce will pay immediate dividends as we look to further grow our business and we see tremendous potential in working together.”
While Ticket Monster brand and leadership team will remain in place, Groupon and TMON will work on an operational plan for the two local entities once the deal is closed.
Per the terms of the agreement, Groupon will acquire LivingSocial Korea — the holding company that owns Ticket Monster. Any non-Korean assets currently owned by LivingSocial Korea will be divested prior to close. The agreement is for at least $100 million in cash, and up to $160 million in Groupon Class A common stock, with the final cash and stock allocation to be determined upon close.
The transaction is subject to regulatory and other customary closing conditions, including approval by Korean antitrust authorities.
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