GUS Plc acquires PriceGrabber.com
GUS Plc is in credit-checking business and is now aiming to expand their online businesses. They have just announced plans to acquire online price comparison website PriceGrabber.com. the deal would cost them around $485 million. after the deal was announced, the companyâ€™s share touched a record high in the market.
GUS has not taken a bad decision. Their new acquisition would see sales and profit growth of around 50 percent this year. And the profits from the company should add on to the parent company in the first year itself. PriceGrabber.com is the third-largest U.S. Internet shopping search engine. The market is worth around $400 million and is expected to see a continues growth in the coming years.
PriceGrabber.com was started way back in 1999 and gets close to around 17 million user visits a month. The website lets user search, compare prices of goods like computers and clothing, and has around 9,000 online retailers registered to its network each of whom pays a fee each time they get a lead. They also power comparison search engines on some big portals like About.com, Ask Jeeves, BellSouth, Comcast, and MSN.
Interestingly, the latest deal means that all the top three shopping related search engines were acquired this year. eBay acquired Shopping.com, E.W. Scripps Co. acquired Shopzilla.com, and now GUS acquired PriceGrabber.com.