In an effort to diversify its revenue streams, Chase Bank USA,
NA - a subsidiary of
JPMorgan Chase & Co.
) - announced the signing of a deal, under which it will acquire
Bloomspot, Inc. Bloomspot is an online daily coupon site, which
offers discounts to lavish spas, high-end restaurants and weekend
destinations in the U.S. and international markets.
The acquisition is expected to be completed in early 2013. The
terms of the deal are undisclosed; however, according to market
rumors, Chase Bank will pay $35 million. Almost all the employees
of Bloomspot - approximately 100 - will be added to JPMorgan on
the completion of the acquisition.
Chase Bank is working to develop a strong level of
relationship with their clients. It aims to bring customers and
merchants together by helping the former redeem discounts and
offers from the latter. Further, Bloomspot's innovative business
model is anticipated to support Chase's efforts.
Bloomspot's core business model focuses on building a
long-term relationship between merchants and customers. Further,
Bloomspot believes that the association with Chase Bank will
provide the prospect to combine its path-breaking technology with
the acquiring company's expertise.
Earlier in December, Capital One Digital Labs - a wing of
Capital One Financial Corp.
) - purchased nearly all the assets of the New York-based data
aggregator, Bundle Corp. Capital One stated that it is planning
to utilize the data available from spending and local directory
data of Bundle Corp to provide its own clientele a range of new
JPMorgan retains a Zacks #3 Rank, which translates into a
short-term Hold rating. Capital One also retains a Zacks #3
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