In an effort to diversify its revenue streams, Chase Bank USA, NA – a subsidiary of JPMorgan Chase & Co. (JPM - Analyst Report) – 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.
(COF - Analyst Report
) – 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 data-driven products.
JPMorgan retains a Zacks #3 Rank, which translates into a short-term Hold rating. Capital One also retains a Zacks #3 Rank.