Local commerce platform Groupon (NASDAQ: GRPN) received a $250m investment.
Atairos, an independent private company launched earlier this year with more than $4 billion in committed capital and focused on supporting growth-oriented businesses across a wide range of industries, made the investment*. In conjunction with the deal, Michael Angelakis, Chairman and Chief Executive Officer of Atairos and former Vice Chairman and Chief Financial Officer of Comcast Corporation, will join Groupon’s Board of Directors.
In addition to the investment, Comcast Corporation will work with Groupon to identify and implement potential strategic partnership opportunities including, as said by Neil Smit, President and CEO of Comcast Cable, exploring the opportunity to combine Groupon’s local expertise with Comcast’s subscriber and advertiser network.
Led by CEO Rich Williams and Chairman Eric Lefkofsky, Groupon offers consumers a marketplace of local deals related to products, services and vacations, on the web or on mobile. The company will use the proceeds for general corporate purposes, including the repurchase of stock. The Board has approved a $200m increase to its existing share repurchase program and extended the program through April 2018.
*Under the terms of the investment, Atairos is purchasing $250m in aggregate principal amount of 3.25% convertible senior notes due 2022 with an initial conversion price of approximately $5.40 per share. The convertible notes will be general unsecured obligations of Groupon.