PayPal buys deal-finding service Honey for $4 billion
PayPal has agreed to pay $4 billion to acquire Honey Science Corporation, which is best-known for its reward and deal-finding service and browser add-on.
The acquisition still needs the usual regulatory approval, but the transaction is expected to be completed in the first quarter of 2020. The company says that the purchase "will transform the shopping experience for PayPal's consumers while increasing sales and customer engagement for its merchants".
As part of the deal, Honey will remain headquartered in Los Angeles, and it will continue to be led by co-founders George Ruan and Ryan Hudson as part of PayPal's global consumer product and technology organization.
The deal will bring Honey's 17 million monthly active users under PayPal's wing, giving it access to the company's 300 million strong userbase.
PayPal president and CEO, Dan Schulman, says:
Honey is amongst the most transformative acquisitions in PayPal's history. It provides a broad portfolio of services to simplify the consumer shopping experience, while at the same time making it more affordable and rewarding. The combination of Honey's complementary consumer products with our platform will significantly enhance our ability to drive engagement and play a more meaningful role in the daily lives of our consumers. As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalized offers, and drive incremental sales. The combination of Honey and PayPal adds another significant and meaningful dimension to our two-sided platform.
Honey is equally upbeat about the deal, with Hudson saying: "Combining PayPal's assets and reach with our technology, we can build powerful new online shopping experiences for consumers and merchants. We'll have the ability to help millions of retailers efficiently reach consumers with offers that deliver more and more value to Honey members".
At the moment it is not clear quite how Honey's services will be integrated into PayPal's products, but more will become apparent in the coming months.