In its second-largest acquisition, Amazon buys the company for $970 million.
CampusU Inc., an online retailer and social networking hub for college students, has set the terms of its initial public offering. The company, which derives about 71% of revenue from e-commerce, expects to raise up to $22.7 million in working capital.
CampusU Inc., an online retailer and social networking hub for college students, has set the terms for its initial public offering.
The company, which derives about 71% of revenue from e-commerce, expects to sell 3.5 million shares at $5.50 to $6.50 per share. The IPO could raise as much as $22.7 million in new working capital the company will use for general corporate purposes, making acquisitions, expanding current business lines and repaying debt. Maxim Group LLC, a New York investment banking firm, is the underwriter of the deal.
CampusU operates three e-commerce sites: CampusU.com, which contains numerous interactive features and subject matter relating to college life, humor, travel, advice and entertainment; CampusFlix.com, which focuses on user-generated video on a variety of topics, including independent film and music; and LazyStudents.com, which provides research sources and advice on studying and test taking.
On CampusU.com the company carries an inventory of 8,000 name-brand software and other technology products offered at discounts of up to 80%. Through the first six months of the year, CampusU posted a net loss of $3.8 million on revenue of $9.9 million compared with a net loss of $1.5 million on sales of $4.9 million in the prior year. In 2006, CampusU had a net loss of $5.6 million on total revenue of $11.9 million. E-commerce sales totaled $8.4 million.