System1 (NYSE: SST), a Los Angeles, CA-based omnichannel customer acquisition platform, acquired NextGen Shopping, Inc.’s CouponFollow, a NYC based large coupon destination for online shoppers, for up to $115m.
The total consideration consists of a combination of cash and stock, inclusive of earnout payments earned and payable over three years upon the achievement of certain financial objectives. The stock consideration was issued in a private placement to the stockholders of NextGen Shopping.
CouponFollow is a real-time coupon code search engine and directory that helps millions of consumers save money each month. By scouring the Internet for the latest discounts and offers, CouponFollow is able to deliver these codes to a global audience of engaged shoppers on the web. It also provides valuable tools, guides, research, and reports to help consumers save both time and money.
The acquisition of the profitable digital coupon company accelerates System1’s e-commerce efforts and provides a suite of shopping-related products to integrate across System1’s product lines. In addition, CouponFollow’s brand partnerships are expected to bolster System1’s efforts to continue building out its direct to advertiser relationships.
System1 will use its RAMP platform to further grow CouponFollow’s user base, whose customer acquisition efforts to date have primarily been organic. In addition to its coupon code search engine, CouponFollow has millions of subscribers to its email newsletter and works with over 5,000 brand partners, including many of the top online retailers in the fashion, travel and electronics categories. Principally based in New York, CouponFollow’s team will be joining System1, with Marc Mezzacca, founder and CEO, joining System1’s executive leadership team.
Led by Michael Blend, co-founder and CEO, System1 combines technology & data science to operate its Responsive Acquisition Marketing Platform (RAMP). Its RAMP is omnichannel and omnivertical, and built for a privacy-centric world. RAMP enables the building of brands across multiple consumer verticals, the development & growth of a suite of privacy-focused products, and the delivery of high-intent customers to advertising partners.
FinSMEs
04/03/2022