Online media company Yahoo!7 today announced it has acquired leading online Group Buying site, Spreets Pty Ltd, including its New Zealand operations.
Spreets (spreets.com.au and spreets.co.nz) was the first Group Buying site in ANZ having been in operation for almost a year with 500,000 members and more than 274,000 vouchers purchased since inception.
The Yahoo!7 business delivers a new audience to the Spreets site through distribution on the Yahoo!7 Network as well as access to the benefits provided in Australia and New Zealand through its joint venture partners Yahoo! Inc. and the Seven Media Group, including marketing and promotions.
The acquisition helps Yahoo!7 to deliver on its Local and Social strategies as well as providing further diversification of revenue streams outside of display advertising.
“After carefully reviewing the market it was clear that Spreets is a market-leader in what is becoming a highly competitive and fast growing market. The Spreets management team in Dean McEvoy and Justus Hammer come with strong expertise and experience in the Australian Group Buying market,” said Rohan Lund CEO of Yahoo!7.
“At its core Spreets is about leveraging insights to deliver the best local deals through an online social experience, and this maps perfectly to the Yahoo!7 Local and Social strategies. The acquisition of Spreets means we can bring the best of Yahoo!7 to grow the business even further,” he said.
According to Dean McEvoy, CEO of Spreets, the Group Buying model has rapidly evolved over the past year delivering cost-effective marketing to small businesses and addressing an unmet and growing demand from consumers for online coupon deals.
“Australians and Kiwis love an amazing deal and Spreets has seen significant growth delivering over $40 million in savings to consumers over the past year. We’re proud to be an Australian born company leading the market in this rapidly evolving space,” he said
“We’re thrilled with the acquisition by Yahoo!7 as we see the huge potential that one of Australia’s leading online media companies, which has huge momentum in the market, will bring to the Spreets business.”
The financial terms of the acquisition were not disclosed.