Last week’s acquisition of Westlake Village business-to-business deal website BizDeals.com is a sign of consolidation for a small niche of the crowded deal market.
BizDeals, which offers weekly discounts on products and services for small businesses, was purchased by Concord, Mass., competitor RapidBuyr on Nov. 15 for an undisclosed price.
Even though both companies are only about one year old, Darr Aley, co-founder and chief marketing officer of RapidBuyr, said the market was already in need of tightening.
“This daily deals space is reaching some deal fatigue on the consumer side,” he said. “We’ve been trying to consolidate the space.”
Much like consumer deals offered by Chicago-based Groupon, BizDeals and RapidBuyr offer discounts to businesses. BizDeals focuses primarily on services, while RapidBuyr specializes in discounts on technology hardware.
As part of the acquisition, BizDeals’ customers have been integrated into RapidBuyr. A couple of employees from BizDeals’ small staff will remain with RapidBuyr and help the company set up a West Coast office. RapidBuyr currently offers regional deals in nine cities, but none in California. Aley said RapidBuyr has been looking to expand into the state.
“This has helped us to shore up more of a West Coast business development and management office,” he said. “It’s absolutely fortified our position out here.”
The acquisition expands RapidBuyr’s customer base and allows it to grow sales of its discounts on services. Meanwhile, BizDeals’ customers will have access to RapidBuyr’s broader and more frequent deals, said Mark Reese, BizDeals’ founder and chief executive.
“We’ve been impressed with RapidBuyr’s leadership and rapid growth in the business deals space,” he said in a statement. “We’re confident that our loyal small business customers will enjoy the benefits of membership in the expanded community created by this combination.”
Reese will help with the transition and then depart.
He previously was chief operating officer at Razorgator Interactive of Marina del Rey, which sells tickets for live events such as concerts. Several of his past gigs have been in the e-commerce space.
RapidBuyr promotes and distributes its deals through partnerships with the American City Business Journals and BuyerZone.com. But finding an audience for these deals has been difficult as more competitors enter the market, Aley said.
“A lot of these deal businesses have gone out of business because they weren’t able to capture the traffic that RapidBuyr has been able to achieve,” he said.
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