American Express, JPMorgan Chase and Citi joined together to provide Rearden Commerce, the e-retailer with $133 million in development capital, some of which was used to acquire HomeRun.com, a daily deals site. Specifics of the acquisition were not publicized. Other Rearden include Vinod Khosla and Oak Investment Partners.
Today is a great day at Rearden Commerce. We’ve secured $133 million in private equity funding and acquired HomeRun.com, creator of the HomeRun social-buying service and the OfferEngine platform, which powers group commerce programs for many of the best known consumer web sites. This is all with an eye toward accelerating the development of our Deem ecommerce platform. I want to share my excitement with you, and let you know how these achievements will benefit you, as a customer in the Rearden Commerce family.
We plan to leverage the new funding from current investors American Express and JPMorgan Chase, as well as from new investor Citi, to accelerate the development of our Deem ecommerce platform. Though the name Deem is new, each of you has already leveraged the Deem platform when you have acted as a merchant and/or buyer through the Rearden Commerce network. Today, we begin to formalize the platform under the Deem name — a key milestone in the evolution of Rearden. Deem connects buyers and sellers through a one-to-one, personalized marketplace and will be fueled in part by HomeRun.com’s social commerce technology. With HomeRun.com, we can now provide our merchants with the ability to generate personalized, relevant and contextual offers for your customers.
I am truly excited about the unique capabilities that each of our partners brings to the Deem ecosystem. These are some of the world’s leaders in commerce — for consumers and merchants alike — and we believe that the combination of their assets and the Deem platform are indeed transformational. This new round of funding and the integration of HomeRun.com onto the Deem platform spotlight the magnitude of the opportunity that exists for the category of Smart Commerce.
In the past 12 months, Rearden Commerce has grown at a significant rate; more than tripling our distribution channel penetration giving us access to over 60 million consumers, and quadrupling our merchant network to over 1.2 million. Partners include market leaders in business travel, small business solutions and consumer loyalty, who will leverage the Deem platform, big data and large-scale user bases to transform the interaction between buyers and sellers.
And there’s more to come. In the next several months Rearden Commerce will launch next-generation Merchant Offer Apps for both Consumers and Merchants, as we continue to rapidly expand beyond our initial beachhead in Business Travel, launched in 2005. We have since added smart apps in Mobile in 2007; Consumer Loyalty in 2009 and Small Business applications in Expense and Purchasing in 2008 and 2010, respectively. All of these apps will leverage the Deem platform and be interoperable.
I’m energized with the momentum we’re generating in forwarding Smart Commerce and am appreciative of your business.
Patrick W. Grady
Founder, Chairman and CEO