The home improvement chain also said the malware responsible for the breach has been removed from all stores.
In a deal worth up to $70 million, PC Connection Inc. will acquire web technology retailer Cyberian Outpost Inc., known as Outpost.com. PC Connection focuses on b2b sales to small and mid-sized businesses.
PC Connection Inc., a $1.45 billion a year direct marketer of information technology products, will acquire web technology retailer Cyberian Outpost Inc., known as Outpost.com. The transaction is structured as a stock-for-stock, tax-free merger. The boards of both companies have approved the transaction and expect it to close in the third quarter. The merger is subject to approval of the Cyberian Outpost stockholders.
Under the terms of the agreement, each share of Cyberian Outpost common stock will be converted into shares of PC Connection common stock based upon an exchange ratio which will vary with the level of revenue that Cyberian Outpost generates in June, July and August, as well as with the price of PC Connection stock.
Accounting for the variables, the deal could be valued at about $60 million to $70 million. PC Connection will immediately provide Cyberian Outpost with a working capital line of credit of up to $3 million and an inventory line of credit of up to $5 million, each of which will be secured by Cyberian Outpost`s assets.
In announcing the transaction, Patricia Gallup, chairman and CEO of PC Connection Inc., said, ``We welcome Cyberian Outpost to the growing family of PC Connection companies. This acquisition is consistent with our stated growth strategy and complements our existing business.``
Merrimack, NH-based PC Connection was founded in 1982 with an original investment of $8,000. PC Connection`s sales for 2000 were $1.45 billion. The company focuses on the information technology needs of small and medium-sized businesses.
Kent, CT-based Cyberian Outpost was founded in 1995. The company, a pioneer in online sales, has approximately 1.3 million customers worldwide. Cyberian Outpost reported net revenue of $355 million for the fiscal year ended Feb. 28, 2001. The company will continue to operate under its own brand from its current facilities. Darryl Peck, president and CEO of Cyberian Outpost, will remain with the company, reporting to Robert Wilkins, executive vice president of PC Connection.