Gilt Groupe is rumored to be in the final stages to acquire daily deals service BuyWithMe. BuyWithMe laid off over half of their staff last week to attract potential buyers. Matrix Partners is an investor in BuyWithMe and Gilt Groupe. BuyWithMe is expected to be rolled into Gilt Groupe starting November 1st. BuyWithMe was considered to be the number three player in the daily deals market after Groupon and LivingSocial. BuyWithMe is expected to be rolled into Gilt City. [BetaBeat]

BuyWithMe is a daily deals service that is similar to Groupon and LivingSocial. BuyWithMe has recently acquired student rewards company Edhance. Edhance has one of the largest rewards program in the U.S. Edhance will help BuyWithMe provide merchants with customer return rates and ROI data that roots from the daily deals. Edhance has headquarters in Cambridge, Massachusetts. [MassHighTech]