SAN JOSE, Calif., Nov. 22, 2019– Online Payment Transfer platform PayPal has agreed to acquire Honey Science Corporation, a shopping and rewards platform for approximately $4 billion.
Honey Science Corporation is an L.A. based tech company building tools to help people save time and money when shopping online.
Honey, in combination with PayPal’s two-sided network, will transform the shopping experience for PayPal’s consumers while increasing sales and customer engagement for its merchants.
Founded in 2012, Honey approximately have 17 million monthly active users and helped millions of people find more than $1 billion in savings in the past year.
Honey currently works across approximately 30,000 online retailers ranging from fashion and technology, to travel and pizza delivery.
Honey will accelerate its growth by driving adoption among PayPal and Venmo’s more than 275 million active consumer accounts and sourcing exclusive offers from PayPal’s extensive network of 24 million merchant accounts.
“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,” said Dan Schulman, president, and CEO of PayPal.
Following the acquisition, Honey will retain its headquarters and brand in Los Angeles, California. Honey 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, reporting to Senior Vice President John Kunze.
Honey was profitable on a net income basis in 2018. Subject to customary closing conditions, including the receipt of regulatory approvals, the transaction is expected to close in the first quarter of 2020.