Groupon Inc. (NASDAQ: GRPN) operates online local commerce marketplaces world over that connect merchants to consumers by offering goods and services at a discount. The company reported on Monday it received $250 million investment from a private investment company Atairos which ties with Comcast Corporation (NASDAQ: CMCSA). Now the transaction will pursue potential partnerships between two companies.
“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. “I am extremely pleased that a respected, long-term oriented partner like Atairos shares our view about the vast opportunity ahead for Groupon.”
Groupon said that they will use the proceeds for general corporate purposes, including the repurchase of stock. The company also reported 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 almost $5.40 per share. The convertible notes will be general unsecured obligations of Groupon Inc.
The company, which in November changed its CEO as co-founder Eric Lefkosky stepped aside to become chairman of board, speed up operations all over the world and laying off employees as it focuses in U.S. and Canada which accounted together for the majority of Groupon’s business.