Emerge Commerce Inc., a Toronto-based online shopping promotions company, is expanding its U.S. leisure footprint with the purchase of golfing promoter The UnderPar Group, the companies said.
The $12 million deal for UnderPar, also based in Toronto, will add its forecast $30 million revenue this year to Emerge as it seeks to build on its stable of e-commerce sites including WagJag.com, Buytopia.ca and Shop.ca, the companies said in statement on Wednesday.
“In UnderPar, we’re acquiring a tremendously profitable, growing market leader in the lucrative golf deals space,” Ghassan Halazon, Emerge founder and CEO, said in the statement. Halazon championed UnderPar’s “remarkable” revenue growth “with practically no outside capital” as the “rare breed of disciplined profitable businesses” it seeks.
The companies are betting on the continued expansion of online retailing to disrupt the leisure industry in what’s traditionally been a bricks-and-mortar approach to customers in pro shops and golf clubs.
Emerge, with some 2 million members in a digital deals and savings network, was ranked 12th in the top 50 domestic startups this year by Canadian Business in Sept.
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UnderPar, with a satellite office in San Diego, is planning a fast-growing expansion in the U.S. with its prepaid golf promotions targeting both players seeking savings and courses striving for consistent revenue, the company said. It has 300,000 members and 750 golf course partners.
“UnderPar will gain from additional marketing leverage and cross-selling opportunities,” Mike Bourne, Underpar founder and CEO, said in the statement. It will help “the win/win culture that exists between UnderPar and our valued golf course partners,” he said.