Daily deals leader Groupon and social location innovator Foursquare are in partnership talks, according to multiple sources familiar with the matter.

The arrangement is likely to see Groupon deals targeted to Foursquare users’ check-ins. Mobile app users who tell their friends that they’re in the vicinity of a venue offering a discount are obviously prime customers.

Social distribution could help Groupon move beyond email lists to a more precise and targeted audience. And Foursquare wouldn’t mind the revenue it would get from these leads.