You read it here first. This is the largest deal in the Canadian Deals Industry thus far.
We have gotten news from our industry sources that Dealfind and Teambuy, 2 of Canada’s leading deal providers, have just or are about to merge. That is correct. This news, however, is NOT yet confirmed from either Teambuy or Dealfind and we are awaiting a response from them directly before publishing any details about the merger. We may be wrong, but our sources are usually correct.
This is big news indeed and comes 5 months after the other largest deal in Canada in this industry where Wagjag and Tuango got together to buy the assets of Dealoftheday from the Yellow Pages. If this news is indeed correct, then it comes with several implications for Dealfind/Teambuy and for the Canadian Deals industry. Here are some thoughts:
- What will the name be? If Dealfind’s United States business is maintained, then the Teambuy name will not work given that they do not own the .com version. Also given Teambuy’s foray into other “Deal” businesses such as flash sales and inventory, then the word “Team” in their name does not brand well. The name Dealfind, however, would work across the board but I believe that they may find another name to market for the newly merged company. Perhaps they will choose Fabfind since Teambuy owns them as well. The chosen name will be a good exercise in branding and I look forward to its development….if there is indeed a new name.
- Who’s platform will they be using? Teambuy’s is bilingual and supports goods and other sales types. Dealfind’s platform is not bilingual. Should they use their existing platform or should they consolidate and reduce IT expenses and start evaluating a deals platform such as Group Commerce or Nimble Commerce. If they choose their own platform, then they will probably use Teambuy’s.
- Who will run the company? Dealfind has 2 founders; Gary and Michael..both run the company. Correction: Gary left Dealfind n October 2012. Teambuy has 4 co-founders and Ghassan and Edward run the company. In cases like these, I highly anticipate that at least 1-2 co founders of either company will no longer continue with the merged company. A couple will probably stay on for the transition, cash out and then simply move on. That’s just the way it goes.
- The merged sales will make the new company the 2nd largest in Canada behind Groupon Canada and the #1 Canadian owned Deals company. That should make Teambuy very happy since they have been wanting to lead in Canada for some time.
- Does the merger include assets from Menu Palace? This was the Restaurant listing business Dealfind spun out of.
- The merged company truly impacts sales across the country EXCEPT Quebec. Dealfind does not have very strong numbers in Quebec (no French), so the sales numbers in the province of Quebec will in crease a little, but not by much. The real impact is the rest of the country.
- This helps consolidate the industry further and helps consumers have less choice of leading deal providers and perhaps gives smaller deal providers a chance at getting more attention. Which is always a good thing.
- This will impact Deal aggregators since Dealfind pays very attractive affiliate commissions. The merged company will provide less commission opportunities for aggregators…
- This merger will initiate other mergers across the industry.
- Will the merged company maintain or even grow on Dealfind’s business in the USA?
- The top Deal companies in Canada will now be, Groupon, Dealfind/Teambuy merger, Wagjag, Tuango and a distant Living Social.
These are but some thoughts. Others will emerge as we receive detailed information from Teambuy and Dealfind representatives.
2013 is starting off rather strong in terms of Deal news….