Consolidation Continues In Performance Marketing Space As Ebates Gobbles Up FatWallet
All industries go though a period of growth and consolidation.Â It looks like consolidation is going to be the name of the game for performance marketing companies.Â Just today, Ebates announced that they have acquired FatWallet and AnyCoupons.com to form a new consolidated company called Performance Marketing Brands, Inc. (PMB).Â The new company expects to be an Internet Retailer Top 500 e-Retailer in 201 with shoppers expected to spend over $1.1 billion through PMB’s sites.
Ebates’ creation of Performance Marketing Brands and acquisition of FatWallet and AnyCoupons has been funded by August Capital, Cannan Partners, Foundation Capital and Silicon Valley Bank. The terms of the acquisitions were not disclosed.
“The online reward and discount shopping space is growing rapidly and we felt the time is right to establish a clear leadership position by combining the best companies under Performance Marketing Brands”, said David Hornik of August Capital. “We are happy to support this new combination and look forward to driving new levels of growth and innovation in the industry.”
This isn’t the first major acquisition we have seen in our industry.Â Just last December, WhaleShark Media, Inc announced the acquisition of RetailMeNot.com, the most visited online coupon site in the world.Â The WhaleShark MediaÂ portfolio ofÂ coupon and deal websites also includes Deals.com, Deals2Buy.com, CheapStingyBargains.com, CouponSeven.com and CouponShare.com. Â WhaleShark Media is also funded by Venture Capital, with funding from Austin Ventures, Norwest Venture Partners (NVP) and Adams Street Partners.
While both of these companies appear structured and poised to roll up other deal and loyalty based sites.Â I wouldn’t be surprised to see similar deals and transactions in the other major performance marketing verticals as more Venture Capital and Private Equity firms start poking around and understanding the true profitability and value of the major industry players.