Notable Daily Deal mergers and acquisitions in Canada for 2012

Notable Daily Deal mergers and acquisitions in Canada for 2012

The year that was 2012 was certainly entertaining for the Deals industry in Canada.There were customer service nightmares, mergers, acquisitions, PR nightmares, record sales numbers for some sites, and continued PR disasters from Groupon. However, let’s focus on the most notable mergers and acquisitions of the past year in Canada. Not only do they show a consolidation of the industry but they also show who will ultimately lead.

 

-Acquiree:  Le Renard
Acquirer: Tuango
-When: Spring 2012

Le Renard; , one of the leading deal providers in Quebec. This enabled Tuango to eliminate a strong competitor owned by a large media company ( La Presse) and at the same time forge a marketing relationship with La Presse newspaper distribution across Quebec….

 

-Acquiree:  Restoboom
-Acquirer: Tuango
-When: Spring 2012

RestoBoom; , restaurant deals service operated by the folks from Restomontreal, the largest restaurant portal in the Country (but only operates for Montreal). This enabled Tuango to also forge a marketing relationship with the largest restaurant portal for Montreal.

 

 

-Acquiree:  Promo Du Jour,
-Acquirer: Tuango
-When: Summer 2012

Promo Du Jour: the french version of Deal of the Day from the Yellow pages (formerly from Red flag Deals). This enabled Tuango to eliminate the 2nd or 3rd leading competitor in Quebec. The Yellow Pages is having considerable financial difficulties and needed to unload some assets. Their deal of the day program needed to go and they worked out a deal with Tuango for their Quebec based assets.

 

-Acquiree:  Deal of The Day
-Acquirer: Wagjag
-When: Summer 2012

Deal of the Day; from the Yellow pages (formerly from Red flag Deals). This enabled Wagjag to eliminate a strong national competitor. The Yellow Pages is having considerable financial difficulties and needed to unload some assets. Their deal of the day program needed to go and they worked out a deal with Wagjag for their Canadian assets (Quebec assets were bought by Tuango).

 

 

-Marketing relationshipee:  Dealicious.ca
-Marketing Partner: TravelZoo
-When: Fall 2012

Dealicious; (associated with dine.to, Toronto’s main restaurant portal). The folks from Dealicious (some of the same folks at dine.to) needed to focus on their main business, that of the restaurant portal business from dine.to. A marketing relationship was therefore worked out with Travelzoo. Details of which were not released.

 

 

-Acquiree:  SwarmJam,
-Acquirer: City Xpress
-When: Winter 2012

Swarmjam; owned by Post Media. Post Media had enough and needed to sell. CityXpress were already running the Swarmjam technology and they ended up working out a deal with Post Media for the SwarmJam assets. Now CityXpress runs the program. This buyout did not receive much fan fair in the media. It will be interesting to see what CityXpress does with the model. One question we have is what is CityXpress doing with SwarmJam’s customer database from across the counry where CityXpress is not present? Notably Montreal and Toronto. did Post Media even sell them this database? If CityXpress is not leveraging these databases then we know of a few deal providers that would be interested in procuring them.

 

-Merger:  Dealfind
-Merger: Teambuy
-When: Winter 2012

Teambuy and Dealfind, in a surprising move, joined forces to create one of the country’s leading deal destinations. We broke the news on this post and continued to write about it here.

 

There were several other acquisitions over the course of the year, but most from small providers. What will 2013 bring? I anticipate a handful of mid range deal providers to merge or be acquired. Right now, we are continuing to work with about a dozen deal providers that are either looking to sell or buy. We’ll let you know as soon as something happens.

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