PriceGrabber Bought by GUS Plc for $485 Million
However, what does make sense, is that Experian is owned by GUS Plc, “Britain’s second-largest retailer by market value”. Yet, the press release states that the acquisition will fall under Experian because it “complements Experian’s existing operations, connecting consumers to companies over the Internet.”
At first, I was thinking to myself, “Now, I might be missing something here, but, wouldn’t it be more beneficial to have PriceGrabber operate under GUS’s Argos Retail Group?”
Then, nearing the end of the official press release is where it begins to come together as far as their plans.
“Retail and catalogue shopping is the second largest vertical market for Experian Globally.”
With PriceGrabber.com’s 2005 estimated sales of $60 million, and $25 million EBIT, it clearly becomes obvious that this acquisition is part of their strategy to acquire more customers for Experian, and not solely because of the future value they see in the shopping comparison vertical.
Finally, the press release reminds everyone that Experian also owns LowerMyBills.com, Affiliate Fuel, Consumer Direct etc. All of which could be integrated to significantly benefit each other.
These are the kinds of acquisition strategies I like to see executed well. It should certainly be interesting to see how these companies move forward in their integrations.
Thanks to WebmasterWorld for the heads up.