RetailMeNot, a platform for deals and coupons, Thursday announced that it has acquired Phoenix-based GiftCard Zen, a secondary marketplace for gift cards.
The Austin-based company acquired GiftCard Zen for $22 million in cash and up to $11 million more if it meets specific targets and continues to employ a key employee after April 5th when the deal closed.
GiftCard Zen will continue to be based in Phoenix and its management team will report to Lou Agnese, senior vice president and general manager of RetailMeNot’s gift card business unit.
“RetailMeNot wants to be the one-stop shop for savings when a consumer shops at one of our thousands of retail partners or takes their family to a restaurant. GiftCard Zen is a great fit with RetailMeNot as its inventory of discounted gift card content will provide consumers another meaningful way for RetailMeNot to fulfill our mission to help people save money,” Cotter Cunningham, CEO and Founder of RetailMeNot said in a news release.
GiftCard Zen buys gift cards from consumers and businesses and sells them to consumers and businesses at a discount of face value. RetailMeNot estimates about $44 billion in unused gift cards exists in the U.S. and that’s just for cards issued between 2008 and 2014. Those cards could be sold on a secondary market like GiftCard Zen.
“GiftCard Zen shares the same mission with RetailMeNot, to help consumers save money when they shop at their favorite retailers, restaurants and brands,” Aaron Dragushan, founder, GiftCard Zen said in a news release.
In addition to the acquisition, RetailMeNot reported preliminary total net revenues for the first quarter to be at or above the high-end of guidance and in the range of $54 million to $54.5 million, versus guidance of $49 million to $54 million. And net income for the first quarter is expected to be between a net loss of $100,000 to a net income of $100,000.
RetailMeNot also reported preliminary total net revenues for 2015 are expected to be in the range of $228 million to $241 million, versus previous guidance of $225 million to $240 million.
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