Deal for Giftcards.com to Acquire Giftly Falls Apart
The acquisition of Giftly by GiftCards.com is not going to happen after all.
Yesterday, Kelly Barnett, chief executive of Giftly, told investors that GiftCards would not buy Giftly, but rather make a $1.5 million investment in the company over the next two years. The investment will come to Giftly in monthly installments.
Giftly has raised about $2.8 million to date for its payment-channel-and-retailer-agnostic gifting platform.
We do not know why GiftCards opted out of the acquisition, which was announced last May. Needless to say, the collapse of the deal takes a bit of air out of the payments startup world.
The squelched deal for an acquisition means investors in Giftly will not be liquidated. As some readers may recall, Bank Innovation is an investor in Giftly. Let me put it this way — :-(.
