(Bloomberg) -- Goldman Sachs Group Inc.’s private equity arm and Hearst Corp. have acquired online coupon and deal-sharing company Slickdeals from Warburg Pincus, according to a statement Thursday.
The deal valued the Las Vegas-based company at more than $500 million, according to people familiar with the matter. Warburg Pincus -- which invested in Slickdeals in 2012 -- will generate a return of 7.2 times on its investment from the sale, said the people, who asked to not be identified because the matter isn’t public.
A spokeswoman for Warburg Pincus declined to comment on the deal valuation or the return on investment.
Goldman Sachs acquired Slickdeals through West Street Capital Partners VII LP, a private equity fund managed by its merchant banking division.
Slickdeals, founded in 1999, attracts about 10 million customers a month and has helped consumers save more than $5.5 billion, according to the statement.
“Slickdeals has grown into the largest community-driven deal-sharing website with millions of savvy users.” Warburg Pincus Managing Director Vishnu Menon, said in the statement. “We are pleased to have built a world class technology business with significant presence in Southern California, an area in which we remain committed to investing.”
To contact the reporter on this story: Kiel Porter in New York at kporter17@bloomberg.net
To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Matthew Monks, Michael Hytha
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