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What Groupon paid for Savored

September 25, 2012: 12:41 PM ET

A $20 million reservation?

FORTUNE -- Groupon (GRPN) yesterday acquired Savored, a digital provider of restaurant reservations and reviews, in a move that seemed designed to muscle in a bit on OpenTable's (OPEN) turf.

No financial terms were disclosed, but Fortune has learned that the purchase price was between $15 million and $20 million (including earn-outs). At least some of it was paid in cash.

Our source adds that the two companies actually began negotiations late last summer, before Groupon went public. "They probably would have gotten more if the deal had closed before the IPO, but I think everyone is still pleased by this deal," he explains.

New York-based Savored not only helps Groupon break into the restaurant reservations business, but also expands its meal discounting options. Most Groupon's require users to buy food up-front, while Savored lets users get discounts at the time of purchase.

Since being founded in 2010 as VillageVines, Savored had raised nearly $4 million in VC funding from GrandBanks Capital, Hearst Interactive Media, High Peaks Venture Partners and Michael Lazerow

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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