Rich Williams continues tidying up at Groupon, selling off some of the bits and pieces collected over the years that the company no longer wants or can afford.
Groupon sold Breadcrumb, a point-of-sale checkout system for restaurants that uses iPads, to Upserve, a Providence, R.I.-based company that makes software used by restaurants to manage operations.
In the past year, Chicago-based Groupon sold for $360 million the controlling stake in Ticket Monster, a South Korean online daily deal site it bought from Living Social for $260 million. And it has exited about 20 of 47 countries where it operated.
Groupon bought Breadcrumb in 2012, when it also bought Chicago-based FeeFighters, a comparison-shopping site for small businesses that need credit card payment processing services. That’s back when Groupon wanted to be “the OS for local commerce.”
Williams, who became CEO late last year, now is talking much more about Groupon “becoming the daily habit in local commerce.” He’s cranking up spending on marketing and advertising, trying to get more consumers to buy deals on Groupon, and dramatically increasing the number of deals offered by merchants. (It now has more than 425,000 deals in North America on its site.)
Groupon didn’t disclose what it paid for Breadcrumb. It will take a stake in Upserve. The two companies began partnering last year.
SHAREHOLDERS GET NO DEAL IN CLASS ACTION
Remember that class-action investor lawsuit against Groupon after its stock plummeted four years ago on disclosures of material weakness in its financial controls?
The deal called for Groupon to pay $45 million to settle the suit. How much will investors get? About $1.12 per share, if the settlement is accepted, according to a preliminary notice today by Pomerantz, a New York-based law firm.
That’s before attorney’s fees and other costs.
Investors howled when Groupon shares dropped 23 percent, or more than $4 per share, in April 2012 to about $14. A hearing to approve the settlement is set for July 13 before U.S. District Judge Charles Norgle in Chicago.
For shareholders, it doesn’t sound like much of a deal.
Source: www.chicagobusiness.com
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