Another Internet retailing pure-play is being brought back home. FTD.com Inc. and IOS Brands Corp., owner of Florists’ Transworld Delivery Inc., have agreed to merge the organizations. Shareholders of FTD.com will receive one share of IOS Class A common stock for each share of FTD.com common stock. FTD owns 98% of the voting stock of FTD.com. IOS plans to change its name to FTD Inc. Retailers across the board are integrating their web operations into the corporate structure. Once thought to be a requirement of success on the web, stand alone status is increasingly rare within multi-channel retailing organizations.
Michael Soenen will continues as president and CEO of FTD.com and will join FTD’s board of directors.
FTD.com says it will benefit from the more diversified revenue base that FTD will provide. FTD has been in business for 90 years and deals with an international network of 48,000 florists. FTD.com sells flowers and specialty gifts not only over the Internet but by phone as well.
IOS Brands has revenue of $308 million a year and earns $25.3 million. In its most recent quarter, FTD.com has revenue of $40.4 million and earned $3.3 million.
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