Groupon Buys Software Development Firm Obtiva

Daily deals giant Groupon has moved to acquire Obtiva, a Ruby on Rails development based out of Chicago, in a bid to boost its engineering prowess.

In a blog post, Groupon explained that Obtiva was the largest Ruby on Rails software development company in Chicago.

The special offers company, which had turned down a $6 billion acquisition offer from Google, has been working with Obtiva since 2009, when it was a small start-up. Groupon already has several Obtiva engineers working in its 600W development teams.

“Today, many of our 600W development teams have Obtivians on them (and several are led by Obtivians.) We decided to stop living in sin and tie the knot,” Groupon said.

“We’re constantly impressed by how capable Obtiva developers are and we’re really looking forward to expanding the team,” the company added.

The acquisition comes as the company is working towards bringing in more engineering talent and expand its premises. Groupon also plans to launch its initial public offering soon, one of the most highly awaited IPOs after Facebook.

However, Groupon has a tough road ahead with big players like search engine giant Google stepping into the daily deals market, armed with mobile payments.