Harland Clarke Holdings Corp. has reached a definitive agreement to purchase RetailMeNot Inc. (Nasdaq: SALE), a discount and savings website for retail and restaurant consumers, for approximately $630 million. The deal allows for Harland Clarke-owned Valassis Communications Inc., a digital analytics and marketing service provider, to utilize RetailMeNot’s digital distribution capabilities.

RetailMeNot is an online marketplace for consumers to receive coupons and sales, discounted gift cards, cash back opportunities, and food and travel offers from both online and in-store retailers and restaurants. The Austin, Texas-based target helps retailers and brands connect with shoppers to drive engagement and sales. RetailMeNot operates with more than 600,000 coupons and offers from nearly 70,000 retailers. The deal is expected to close in the second quarter of 2017.

"RetailMeNot provides a new global digital channel to distribute our clients' offers that perfectly complements Valassis' current digital, mobile, mail and other print networks,” states Harland Clarke CEO Victor Nichols. “The addition of RetailMeNot brings Valassis' clients a new, vast and active consumer base explicitly seeking deals, offers and savings.”

Harland Clarke, headquartered in San Antonio, Texas, is a provider of integrated payment services, marketing services, and retail products. Operating as a portfolio company of investment firm MacAndrews & Forbes Inc., Harland Clarke serves financial institutions, investment firms, business-to-business clients, individual consumers, and small to large businesses serving multiple industries. The buyer employs more than 3,600 workers nationwide and operates manufacturing and contact center facilities in multiple states.

Innovative technology offers an unprecedented set of tools to measure and analyze what customers are doing, especially as the brick-and-mortar retail industry has become fragmented due to shifting consumer habits. Related deals for retail data providers include: Blackstone Group LP (NYSE: BX) and New Mountain Capital’s $570 million investment in JDA Software Group Inc; WalmartLabs, a unit of Wal-Mart Stores Inc. (NYSE: WMT), acquired PunchTab Inc.; HGGC’s acquisition of Instantly Inc.; Nuance Communications Inc.’s (Nasdaq: NUAN) purchase of TouchCommerce; Tyco International plc’s (NYSE: TYC) buying of ShopperTrak; and WPP plc deal to buy Conexance.

Qatalyst Partners is acting as financial adviser to RetailMeNot, while DLA Piper LLP is serving as legal adviser. Moelis & Co. (NYSE: MC) and LionTree Advisors are serving as financial advisers to Harland Clarke. Wachtell Lipton Rosen & Katz is serving as legal counsel to Harland Clarke, while Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel on financing matters.

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Kamaron Leach

Kamaron Leach

Kamaron Leach joined SourceMedia in 2016, serving as Reporter of Mergers & Acquisitions. Kamaron writes the Finance Finesse column about investment banking and lending, and also covers the media and entertainment sector.