- System1 (NYSE: SST) recently announced it is buying CouponFollow. These are the details.
System1 (NYSE: SST) – a leading omnichannel customer acquisition platform – recently announced that it has acquired NextGen Shopping’s CouponFollow, one of the largest coupon destinations for online shoppers, for up to $115 million, with the total consideration consisting of a combination of cash and stock, inclusive of earnout payments earned and payable over three years upon the achievement of certain financial objectives.
This acquisition of the growing and 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. And in addition, CouponFollow’s breadth of brand partnerships is expected to significantly bolster System1’s efforts to continue building out its direct to advertiser relationships.
System1 plans to 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, And 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 is going to be joining System1, with Mezzacca, joining System1’s executive leadership team. And the stock consideration was issued in a private placement to the stockholders of NextGen Shopping.
KEY QUOTES:
“With e-commerce’s continued spending growth, we see a tremendous opportunity to leverage our RAMP customer acquisition platform to further scale CouponFollow’s business. Marc Mezzacca and his team have built a great product and bring a wealth of expertise in retail, digital coupons and SEO to System1. We are thrilled to welcome them to the System1 team.”
– Michael Blend, co-founder and CEO of System1
“Being part of System1 will provide CouponFollow with the platform to grow and compete for market share in this dynamic industry. We look forward to bringing our product offerings to what could potentially be millions more consumers in the near future.”
– Marc Mezzacca, founder and CEO of NextGen Shopping
