August 16, 2007, 12:00 AM

GSI Commerce to acquire Accretive Commerce

GSI Commerce Inc., provider of e-commerce platforms and services to retailers, has agreed to acquire Accretive Commerce Inc., which provides similar services to retailers, in a cash deal worth $97.5 million.

GSI Commerce Inc., provider of e-commerce platforms and services to retailers, has agreed to acquire Accretive Commerce Inc., which provides similar services to retailers, in a cash deal worth $97.5 million.

"Accretive Commerce and GSI Commerce are a terrific fit," says Michael G. Rubin, chairman and CEO of GSI Commerce. "Accretive Commerce`s business model and focus are very similar to GSI`s. Like GSI, Accretive Commerce works with a marquee group of brands and retailers."

The acquisition adds 14 customers to GSI, bringing its customer base to nearly 80. Accretive Commerce’s clients include Kenneth Cole, L.L. Bean, Restoration Hardware, French Toast and The Art Institute of Chicago.

Founded in 1995, Accretive Commerce was formerly known as NewRoads. It offers e-commerce technology, customer support and fulfillment services.

For the 12 months up to June 30, Accretive Commerce recorded net revenue of $83.6 million, income from operations of $4.9 million and adjusted EBITDA of $6.5 million. GSI says it expects to incur integration-related operating expenses of approximately $10 million to $12 million and capital expenditures of $10 million to $15 million.

GSI says that, for now, the Accretive infrastructure will stay in place. Most Accretive senior management will stay with the company through the first year, the company says, adding it plans no changes to GSI’s senior management. “We’re just about to enter the busiest time of year for us and our focus is on having strong and successful third and forth quarters,” says a company spokeswoman. “That means ensuring that this acquisition is seamless to our partners and does not distract us from supporting their businesses and meeting prior commitments and schedules – even with the magnitude of the deal.”

 

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