As per our original post about a week ago, Teambuy and Dealfind have made it official. They have merged. Although the official press release makes it, well, official, many questions still remain. More specifically:
- Is this really a merger or did Teambuy actually buyout Dealfind? Personally I believe Teambuy saved Dealfind.
- What happened to Dealfind? What happened to a company that raised $31 million not long ago, that dominated Canada in sales and subscriber base, that expanded to the US, that drove revenues around $60 million?
- What decisions lead to the large multi million dollar losses they incurred over the past 2 years, did they expand too quickly, what decisions did Gary Lipovetsky and Michael Tulman make as co-founders that lead them to the point where both left the company a few months ago and now merge with Teambuy? Did their investors demand their exit, request a sale or merger? UPDATE** Gary and Michael left Dealfind in October 2012, months before the merger occurred. The two events are unrelated. Still, why did the CEO and the President of the country’s top deal site just pack up and leave? Whoever has the answer, let me know.
Yes, some questions linger, but at this moment they are all irrelevant to the situation at hand. At the moment, Teambuy is now the dominant player in Canada after Groupon and they should be congratulated for this
buyout oops, I mean merger. UPDATE** I have been updated on the fact that this was indeed a merger of the two companies and not a buyout. The investors for both companies figured that there was a better opportunity in joining the companies together than continuing separately.
Now, with a much larger database and an avenue into the US, Teambuy has many opportunities in front of it. Namely:
- convincing brand name retailers to finally leverage Teambuy’s massive database of customers
- expanding well beyond Daily Deals and becoming one of Canada’s, if not Canada’s main, e-commerce deals destination including product deals, flash sales, local deals, etc..
- establishing strategic partnerships with large entities such as media companies, tech companies among others
An interesting year to come in the Deals space in Canada. Stay tuned…
Here is their official Press Release.
Teambuy.ca and Dealfind.com announce industry-changing merger
Union of heavyweights creates largest Canadian deal site
TORONTO, Jan. 15, 2013 /CNW/ – TeamBuy.ca and Dealfind.com, two of Canada’s leading e-commerce companies, are pleased to announce a transformational merger that creates Canada’s largest online deals destination.
The transaction—the largest ‘daily deal’ merger in North American history—brings two of the strongest brands in the industry together to offer an unrivaled array of unbeatable deals to over 3.5 million members combined—including a million throughout the United States. Both companies began as ‘deal-a-day’ sites, evolving rapidly to become leaders in the broader flash sales and e-commerce space across various categories.
“From a consolidation perspective, this merger gives us a rock solid foundation where one in every 10 Canadians is signed up to our service,” says Ghassan Halazon, CEO of TeamBuy. “Over the past few years, both TeamBuy and Dealfind have chosen to re-imagine the original daily deal model in very similar ways. This makes the merger a perfect fit from an operational standpoint.”
The two brands will continue operating separately throughout early 2013, after which the sites will be integrated under a single banner and a newly minted website will be unveiled. Halazon continues in his role as CEO, while TeamBuy President Edward Yao and Dealfind CFO and COO Jason Redman continue in their respective roles.
The merger also includes MenuPalace.com, the popular restaurant and hospitality guide, which prior to the deal had operated alongside Dealfind.com as a North American hub for finding the best restaurants and ordering online.
The combined company plans to increase both the amount of deals and verticals available on the site significantly during 2013, further cementing its status as the go-to site for everyday deals across all major shopping categories. Moving forward, the company also plans to bolster areas including customer service, to further improve response times, and logistics, to significantly reduce shipping times. Halazon also says that deal personalization and mobile experience are both areas in which the company plans to stand out to ensure better relevance and overall user experience.
Prior to the merger, the two companies enjoyed robust sales, achieving a combined $7M in gross sales in their last full month apart. Various investors including Insight Venture Partners, ru-Net, Georgian Partners and Ontario Venture Capital Fund, back the merged company.
“Our long-term focus is locked onto re-defining the Canadian e-commerce landscape at-large, connecting millions of members and thousands of merchants in new and exciting ways. This is a match I believe the industry has been waiting on for some time and we couldn’t be more pleased,” adds Halazon.