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Groupon to partner with Atairos, to get $250 million

Staff writer |
Groupon has entered into an agreement for a $250 million investment from Atairos, an independent private company focused on supporting growth-oriented businesses across a wide range of industries.

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"Our partnership with Atairos will help accelerate our transformation while better positioning us to execute on our strategy and mission to build the daily habit in local commerce - which we continued to make progress on in the first quarter," said Groupon CEO Rich Williams.

Atairos was launched earlier this year with more than $4 billion in committed capital and is led by Mr. Angelakis, former Vice Chairman and Chief Financial Officer of Comcast Corporation.

"We are excited to be partnering with Groupon, the undisputed global leader in hyper-local commerce with nearly 50 million active customers," said Mr. Angelakis.

As part of the relationship, Comcast Corporation will work with Groupon to identify and implement potential strategic partnership opportunities.

Groupon will use the proceeds for general corporate purposes, including the repurchase of stock. The company also announced its Board of Directors has approved a $200 million increase to its existing share repurchase program and extended the program through April 2018.

Under the terms of the investment, Atairos is purchasing $250 million in aggregate principal amount of 3.25% convertible senior notes due 2022 with an initial conversion price of approximately $5.40 per share. The convertible notes will be general unsecured obligations of Groupon.

In connection with the investment and subject to market conditions and other factors, Groupon expects to explore entering into convertible note hedge and warrant transactions in the future that would be designed to offset, in part, the potential dilution from the notes.

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