Traders Cheer Groupon's $250 Million Investment Deal With Atarios

Shares of Groupon Inc GRPN gained more than 6 percent after Monday's market open following the announcement of a new partnership with Atairos.

Atairos is an independent private company with more than $4 billion in committed capital led by Comcast Corporation CMCSA's former Vice Chairman and Chief Financial, Michael Angelakis.

As part of the new partnership, Atairos has agreed to invest $250 million in the company. In exchange, Angelakis will join Groupon's Board of Directors. The agreement also calls for a collaboration between Comcast and Groupon to identify and implement potential strategic partnership opportunities.

Groupon said it will use the proceeds from the partnership for general corporate purposes, including the repurchase of its stock. In conjunction with the new partnership announcement, Groupon's Board of Directors approved a $200 million increase to its already existing share repurchase program.

"We are excited to be partnering with Groupon, the undisputed global leader in hyper-local commerce with nearly 50 million active customers," said Angelakis. "Since creating the market in 2008, Groupon has redefined local commerce by increasing consumer buying power and changing the way businesses attract customers using modern mobile technology. We look forward to working closely with Groupon's Board and management team as they pursue their strategic growth objectives."

"The reputation, strategic insights and operational acumen of Michael and his team will be a welcome addition to our company," said Groupon Chairman Eric Lefkofsky. "Michael joins a talented and dedicated Board, and brings a valuable perspective as we continue to scale our local business."

"Groupon is an established leader in connecting customers with local businesses," said Neil Smit, President and CEO of Comcast Cable. "The potential in combining Groupon's local expertise with Comcast's vast subscriber and advertiser network is something we look forward to closely exploring together."

Shares traded recently at $4.16, up 6.1 percent.

Posted In: NewsFinancingTechAtairoseric lefkofskyGrouponGroupon ComcastMichael AngelakisNeil Smit
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...