PayPal Holdings Inc. is going to attain Honey Science Corp. for almost $4 billion. This is going to be the largest-ever acquisition, adding a start-up that accumulates valuable data on consumer purchasing habits as well as doles out coupons for online bargains.
PayPal to Acquire Online Coupon Site Honey for $4 Billion
Around 17 million people use Honey apps or web browser extensions in order to find discounts at online shopping sites. The startup was cost-effective in the year 2018, PayPal stated in a statement.
On the other hand, the shares of the payments giant were little changed in extended trading. Honey is prised at nearly two times what PayPal paid for its next-largest deal, iZettle, the Swedish provider of small-business services it bought in the year 2018, as well as marks the first foremost attainment this year.
At the same time, Chief Executive Officer Dan Schulman has nodded that PayPal, with more than $10 billion in cash, is on the search for more agreements after a string of overthrows previous year that comprised Hyperwallet as well as Simility.
This summer, Schulman said on a conference call with analysts, “You can expect us to be acquisitive going forward,”
PayPal looks at hundreds of possible deals each quarter as well as sees them as a way to expand internationally as well as speed up development of new products, he said. Schulman described acquisitions as “a part of who we are on an on-going basis.”
Mark Palmer, who is an analyst at BTIG, said the attainment would help PayPal make “significant advances” toward becoming more significant to users. It may possibly also give customers as well as merchants a reason to select PayPal “in the face of increasing competition from tech companies, such as Facebook Pay.”
Honey was established in the year 2012 and is going to keep its base in Los Angeles, as well as the founders will carry on to run the business. The services of the company comprises of a browser extension that automatically applies coupons at e-commerce sites.
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