While competitor LivingSocial navigates its way through a major leadership turnover, Groupon is strengthening its assets.
The Chicago-based daily deal site is adding a new arm of flash sales to its repertoire with the acquisition of Ideeli.
Groupon has advertised promotions on discounted clothing, accessories and other sartorial deals previously, but the addition of Ideeli gives the company a much more substantial footing for competing with the likes of Gilt and Amazon-owned MyHabit.
In Monday's announcement, Groupon leadership also suggested that Ideeli's mobile user base is also a major incentive on its part.
Ideeli offers flash sales on men's and women's clothing, shoes and accessories as well as home decor. The brand names are a little less high brow than Gilt, but offer much more mass market opportunity.
But much like MyHabit, Groupon is letting Ideeli maintain its separate website and brand, as well as its headquarters in New York.
With the deal closing today, Groupon paid $43 million in cash.
Naturally, there is a special sale to commemorate the merger with Ideeli offering 20 percent off purchases through tomorrow, January 14.