PayPal to spend $4 bn to buy online deal finder Honey Science

PayPal has agreed to buy Honey Science for about $4 billion, the company’s biggest acquisition in its two-decade history.
PayPal money transferHoney Science provides a service that helps consumers find deals during their online shopping. Honey Science works with 30,000 online retailers and has 17 million monthly users.

PayPal said Honey’s technology will help it reach consumers as they begin their “shopping journeys” with personalized offers.

PayPal’s network of 24 million merchant partners will gain the ability to offer targeted and more personalized promotions to consumers as a means of acquiring new business and driving increased sales. PayPal Credit may also be integrated into Honey to help finance larger purchases.

PayPal already owns peer-to-peer payments app Venmo. Prior to Honey, the company’s biggest purchase was last year’s $2.2 billion acquisition of iZettle, a Swedish payments company.

Honey Science, founded in 2012 and based in Los Angeles, California, operates a browser extension tool that automatically searches for and applies coupon codes as consumers shop online.

Honey Science co-founder Ryan Hudson said in a statement that the acquisition would give the company the ability to work with millions of retailers to reach its members and provide offers to consumers.

Honey co-founders George Ruan and Ryan Hudson will join PayPal where they’ll work on product integrations and scaling the technology to a much larger user base. Honey’s predominantly L.A.-based team of 350 employees will also join PayPal.

Ryan Hudson and George Ruan will report to PayPal SVP John Kunze. Honey Science will retain its brand and Los Angeles headquarters following the acquisition, PayPal said.

Honey Science had raised $49 million from investors, including Ludlow Ventures, Zuma Partners, Mucker Capital, SXE Ventures, BAM Ventures, Plug and Play, Wonder Ventures, Cendana Capital, Anthos Capital and others, according to the Wall Street Journal.