This week, PayPal Holdings, Inc. (PYPL) announced that it is acquiring Honey Science Corporation for approximately $4 billion, as per reports. Honey Science is a fast-growing technology platform for shopping and rewards, and along with PayPal’s two-sided network both the companies aim to transform the shopping experience, engagement, and sales for PayPal’s consumers and its merchants.
Founded in 2012, Honey Science now managees 17 million monthly active users and 30,000 online retailers which it reports to have helped millions of people find more than $1 billion in savings in the past year. Honey offers a suite of products and services to include a mobile shopping assistant, offers and rewards program, and price-tracking tools and alerts. With the new association, Honey will allow PayPal to reach consumers at the start of their shopping journeys and will enhance PayPal’s ability to help merchants acquire and convert consumers by offering deals that are personalized, timely, and optimized across channels.
Honey is expected to continue operating from its headquarters in Los Angeles, California after the acquisition. Its co-founders George Ruan and Ryan Hudson will continue to lead the Honey team as part of PayPal’s global consumer product and technology organization and will report to Senior Vice President John Kunze.
“Honey is amongst the most transformative acquisitions in PayPal’s history. It provides a broad portfolio of services to simplify the consumer shopping experience, while at the same time making it more affordable and rewarding,” , “The combination of Honey’s complementary consumer products with our platform will significantly enhance our ability to drive engagement and play a more meaningful role in the daily lives of our consumers. As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalized offers, and drive incremental sales. The combination of Honey and PayPal adds another significant and meaningful dimension to our two-sided platform.” stated Dan Schulman, president, and CEO of PayPal.
Perella Weinberg Partners LP to act as financial adviser to PayPal with Skadden, Arps, Slate, Meagher & Flom LLP as its legal adviser. Latham & Watkins, LLP to assist Honey as its legal adviser and Qatalyst Partners as a financial adviser.