E-COMMERCE

With acquisition, RetailMeNot jumps into prescription drug business

Posted May 8th, 2018

Austin-based online coupon company RetailMeNot is jumping into the prescription drug business with the acquisition of a Utah company that provides drug pricing information and coupons.

LowestMed, based in Draper, Utah, operates a website and app that lets consumers research and compare prescription drug prices and save at their local pharmacy by using a printable or mobile coupon. 

As part of the deal, LowestMed will be renamed RetailMeNot Rx Saver.

Financial terms of the purchase were not disclosed.

Founded in 2009, Austin-based RetailMeNot operates the world’s largest online marketplace for coupons and consumer deals.

Its sites and mobile apps provide coupon codes, free trials and other retail offers from more than 70,000 merchants including Macy’s, Nordstrom, Walmart and Target.

RetailMeNot was acquired by San Antonio-based Harland Clarke Holdings a year ago for about $630 million. RetailMeNot, which was previously publicly traded, now operates as a privately held stand-alone division within Harland Clarke Holdings, a global digital payments and marketing company.

Cotter Cunningham, CEO of RetailMeNot, said LowestMed fits into the company’s strategy of offering online coupons, rebates and other digital deals for all consumer purchases.

“RetailMeNot is proud to welcome LowestMed to the company as RetailMeNot Rx Saver,” Cunningham said in a written statement. “Many consumers don’t know that they can easily save money on their prescription medications. The addition of RetailMeNot Rx Saver helps RetailMeNot consumers save on more of the things they need.”

LowestMed, founded in 2009, was one of the first websites and mobile apps to give consumers the ability to compare prices at nearby pharmacies.

Its website and app provide coupons for FDA-approved prescription medications. Shoppers enter the name of a prescription drug, and the app shows how much that medication costs at different pharmacies after discounts are applied.

RetailMeNot has 624 employees worldwide, including 403 based in Austin. 

A RetailMeNot spokesperson said some LowestMed employees and operations will move to Austin while some employees will remain in Utah. The size of LowestMed’s workforce was not disclosed.

Over the years, RetailMeNot has grown by buying smaller websites. Two years ago, it acquired GiftCard Zen, a Phoenix-based startup that buys and sells gift cards online. RetailMeNot said it paid $22 million cash for the company.

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