Is Groupon’s Recent Acquisition Binge a Positive Sign?
Groupon’s acquisition of CommerceInterface last month may not have excited investors but it might be a positive sign for the daily-deals company, especially for its growing battle with Amazon, according to National Traders Association. “By purchasing CommerceInterface, Groupon is set to become the sole beneficiary of the channel management technology that Amazon heavily relies on,” the organization notes. “Amazon and other companies that are benefiting from the sales process management technology are given until the first half of this year to transfer to another provider.”
National Traders Association also notes that CommerceInterface may fit Groupon’s strategy of expanding its presence in international markets, which hasn’t impressed investors and analysts so far.
Meanwhile, Zacks Investment Research says Groupon’s “acquisition spree” in the last 12 months positions the company to have a stronger hold of the small and medium-size business market, in addition to bolstering its stable of technologies and products. “We believe that Groupon is well positioned to gain from rising e-commerce spending on mobile devices, a profitable domestic market and an under-penetrated international market,” Zacks notes. “We expect these opportunities to continue to drive top-line growth going forward.”
However, Zacks also acknowledges that the market is getting more competitive, thanks in part to growing interest by Amazon and Google.
