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Actionable news in SALE: RetailMeNot, Inc.,

Retailmenot, Inc. Acquires Secondary Gift Card Marketplace, Giftcard Zen Inc,

The following excerpt is from the company's SEC filing.

Provides Preliminary First Quarter Financial Results and Updates Fiscal Year

2016 Guidance

Acquisition Significantly Expands RetailMeNots Operational Abilities and Digital Savings-

Oriented Content to Enhance Consumer Experience and Drive Long Term Growth

Company also Posts Positive Preliminary Earnings Results for First Quarter 2016

AUSTIN, Texas, April 7, 2016 RetailMeNot, Inc. (NASDAQ:SALE), a leading digital savings destination connecting consumers with retailers, restaurants and brands, both online and in-store, announced today that it has acquired GiftCard Zen Inc, a secondary marketplace for gift cards. The company also provided preliminary financial results for the first quarter ended March 31, 2016 and updated financial guidance for the calendar year ending December 31, 2016.

RetailMeNot wants to be the one-stop shop for savings when a consumer shops at one of our thousands of retail partners or takes their family to a restaurant. GiftCard Zen is a great fit with RetailMeNot as its inventory of discounted gift card content will provide consumers another meaningful way for RetailMeNot to fulfill our mission to help people save money, said Cotter Cunningham, CEO & Founder, RetailMeNot, Inc. We expect that GiftCard Zens existing operational capabilities and its ability to capture and grow secondary gift card inventory pair well with the power and size of the RetailMeNot audience. We believe this acquisition will help us accelerate our overall growth, and will quickly provide a broad selection of discounted gift cards from over 700 different retailers, brands and restaurants, further solidifying RetailMeNots position as a leading savings destination.

GiftCard Zen is a leader in the secondary gift card market, which involves buying gift cards from, and selling gift cards to, consumers and businesses at a discount to face value. The acquisition of GiftCard Zen accelerates RetailMeNots strategy of providing consumers with more ways to save across the shopping journey. RetailMeNot believes the addition of GiftCard Zens discounted gift cards alongside RetailMeNots e-commerce and in-store coupon, sales and rebate content further differentiates the RetailMeNot brand and will drive higher frequency with users, across the companys mobile app and websites, whether shopping in-store or online. RetailMeNot estimates that approximately $44 billion in unused, closed loop gift cards had accumulated in the United States between 2008 and 2014 and could have been made available for sale on the secondary gift card market.

GiftCard Zen shares the same mission with RetailMeNot, to help consumers save money when they shop at their favorite retailers, restaurants and brands, said Aaron Dragushan, founder, GiftCard Zen Inc. Im incredibly pleased we are joining a company and culture that values the business weve built over the past three and a half years.

Acquisition Details

RetailMeNot, Inc. acquired GiftCard Zen Inc for $22 million in cash, plus up to an additional $11 million in deferred compensation based on the achievement of specific performance targets and continued employment of a key employee following the closing date of the transaction. The transaction closed on April 5, 2016. GiftCard Zen will continue to operate out of Phoenix, Arizona, with its existing management team reporting directly into Lou Agnese, senior vice president and general manager of RetailMeNots gift card business unit.

First Quarter Preliminary Results and Updated 2016 Business Outlook

RetailMeNot, Inc. is providing preliminary results for its first quarter ended March 31, 2016 and updating its guidance for its fiscal year ending December 31, 2016. The company will provide details of the GiftCard Zen Inc business model and outlook separately on its first quarter 2016 earnings call on May 3, 2016.

Total net revenues for the first quarter are expected to be at or above the high-end of guidance and in the range of $54.0 to $54.5 million, versus guidance of $49.0 to $54.0 million.

Adjusted EBITDA for the first quarter is expected to be at or above the high-end of guidance and in the range of $12.0 to $12.5 million, or adjusted EBITDA margins of 22.6% at the mid-point, versus guidance of $8.0 to $12.0 million.

Net income for the first quarter is expected to be between a net loss of $100 thousand to a net income of $100 thousand, which is inclusive of an impairment of $832 thousand of unamortized internally developed software and...


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