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Groupon purchases Ideeli for $43 million

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Groupon made a deal with flash sales fashion retailer Ideeli. USA Today reported on Jan. 13 that the deals site acquired the fashion retailer to expand in the apparel area.

It's been said that the coupon company paid $43 million for the deal, which closed on Monday. Ideeli is not gone yet, though. It will keep its headquarters in New York and will operate as a separate site. Fashion fans won't have to worry about the fashion site disappearing any time soon.

Ideeli made its mark in 2007. It was one of the first fashion flash sale companies that sold designer clothing in fast, daily online sales. The company sells women's clothing, men's clothing and accessories, as well as home decorations.

Groupon CEO Eric Lefkosky said in a statement, "Our customers have demonstrated appetite for these offers."

Ideeli is not a profitable company. In fact, they lost $30 million on $115 million in gross revenue for the past year ending in Feb. 2, 2013, according to an Edgar filing. Maybe this deal with Groupon will be a good thing for the company.