The acquisition of Tiendeo by Shopfully marked a key moment in the consumer technology industry. It is the union of two major players in the sector to create one of the most powerful platforms at European level in the digitisation of the shopping experience. At Baker Tilly we tell you about the details of this transaction, both financial and strategic, as well as its impact on the Consumer Software sector. 

Shopfully and Tiendeo before the transaction

Shopfully and Tiendeo are two leading companies in the digitisation of the shopping process. They stand out for their innovative approach to connecting consumers with brands and retailers through digital tools: 

• Tiendeo. Founded in Spain in 2011, quickly became a benchmark platform that connects users with catalogues and offers from different establishments.
• Shopfully. Founded in Italy, specialises in generating personalised content for consumers using advanced data marketing techniques.

Both platforms provide users with real-time information on discounts, promotions and nearby shops. To do this, they rely on consumer behavioural data to help them create more personalised experiences. 

Strategic acquisition objectives

This deal, which took place between 2022 y 2023, sought to combine the resources and technology of each company to offer greater value to both consumers and retailers.

The process of buying a company requires preparation of resources and definition of objectives. In this process, Shopfully's acquisition of Tiendeo was aligned with a consolidation strategy to strengthen the position of the two companies in Europe. In other words, the objectives were:

• Geographic expansion. By joining forces both gained European-wide reach, covering more than 12 countries and with a stronger user base.
• Technology consolidation. The integration enabled Shopfully to enhance its data technology, merging capabilities to deliver better digital marketing solutions.
• Operational synergies. Tiendeo and Shopfully now share technological resources and databases, reducing costs and increasing efficiency.
  

The financial perspective for Shopfully's acquisition of Tiendeo

From a financial perspective, Shopfully's acquisition of Tiendeo represents a well-structured strategy to maximise its presence in the retail digitalisation market. 

Key valuation factors

Furthermore, Tiendeo's valuation was made in view of the platform's ability to attract active users and its revenue derived from partnerships with major brands and retailers. For that matter, we recommend you read this article on how to value a company for these operations.

• Growth potential. Tiendeo has demonstrated sustained growth in users and partnerships. This is where it has made its technology a key enabler for any company looking to expand into the digital retail arena.
• Technology and intellectual property. The technological solutions developed by Tiendeo, focused on improving the customer experience, also added additional value to the operation.

Economic structure of the purchase and payment conditions

In turn, the transaction was a deal with the following figures: 

• Transaction value: 35 million for 100% of Tiendeo.
• Transaction date: between 2022 and 2023 
• Settlement benefits: Shopfully is now present in 12 countries and has a network of 45 million users.

In terms of financial structure, the acquisition was designed to maximise Shopfully's return on investment. Thus, it allowed at the same time to retain Tiendeo's talent, such as the founders, who continued as part of the management team for a smooth transition.

Synergies and added value in the Consumer Software sector

One of the most remarkable aspects of this acquisition is the added value provided by the integration of the two platforms. In addition to the aforementioned strategic benefits and the optimisation of internal processes and cost reductionit was achieved:

• Optimisation of data analysis. The combination of Tiendeo's and Shopfully's data provides a more accurate segmentation of the market.
• Potential for consumer education. By knowing their consumers better they can create content that educates the user on how to optimise purchases, aligning with Consumer Software industry principles.

If we reference the synergies of this deal, the purchase is part of ShopFully's expansion strategy. With this operation the company manages to position itself as a European leader in what is known as Drive to Store. Moreover, the acquisition is added to others that follow this line by the company, such as the integration of VolantinoFacile and PromoQui in 2020.

Impact of the agreement on the Spanish and global markets

For the Spanish market, the acquisition has been a step forward in the digitalisation of the retail sector. The union of these two companies gives thousands of local retailers access to advanced digital tools that until now were limited to large international players. It therefore offers:

• Greater competitiveness. Local businesses compete better with Shopfully and Tiendeo's digital marketing and data analytics tools.
• Facilitating access to promotions. Consumers in Spain have better access to local promotions, making their shopping process more efficient.

In terms of global expansion, Shopfully sees this transaction as an opportunity to bring Tiendeo's successful model to growing markets. With its international network Shopfully plans to replicate the model in countries where consumer digitalisation is still in its early stages, leveraging synergies to achieve a larger market share. As shown by Shopfully's subsequent acquisition of Ofertia in 2024.

Conclusions of Shopfully's acquisition of Tiendeo

All in all, the acquisition is perfectly aligned with a geographic diversification and technological improvement strategyFrom a financial point of view , Baker Tillyit is a solid move that maximises operational efficiency and demonstrates how data analytics and marketing personalisation are vital for the growth in the digital sector.

Shopfully's acquisition of Tiendeo is a strategic move aimed directly at consolidating its leadership in consumer digitalisation in Spain and Europe. By joining:

1. They increase their user base
2. They boost their technological capabilities
3. They help consumers by giving efficient access to promotions.

Thereby, Shopfully and Tiendeo, by leveraging synergies, demonstrate how the integration of advanced technology and smart data is a powerful weapon for marketing, as well as for educating consumers and enhancing their shopping experience.

Frequently Asked Questions

Why is the acquisition of Tiendeo by Shopfully important?

The acquisition is important because it allows both companies to establish themselves as leaders in the digitisation of the shopping process, with an approach on data analytics and improving the customer experience.

At Baker Tilly Tech M&A Advisors we specialise in the buying and selling process of companies in the technology sector. If you are interested in buying or selling companiesyou can check out our M&A Academy section where you can find information on these processes. You can also contact us so that an advisor will provide you with personalised advice.