Roger Hardy, who in February sold web-only eyewear company Coastal Contacts for $385.7 million, will consolidate OnlineShoes.com and ShoeMe.ca.
Targeting retail e-commerce growth in Europe, GSI Commerce has agreed to pay approximately $7.9 million in cash to acquire U.K.-based Zendor.com Ltd., a provider of fulfillment and customer care services with five U.K. retailer clients, GSI said today.
Targeting retail e-commerce growth in Europe, turnkey e-commerce systems provider GSI Commerce Inc. has agreed to pay approximately $7.9 million in cash to acquire U.K.-based Zendor.com Ltd., a provider of fulfillment and customer care services with five U.K. retailer clients, GSI said today. The deal would increase GSI’s client base to 85 companies.
“The acquisition of Zendor provides GSI with the opportunity to integrate Zendor’s leading fulfillment and customer care capabilities with GSI’s proven e-commerce technology solution,” says Steven C. Davis, president and managing director of GSI Commerce Solutions International S.L. “This acquisition not only allows us to provide an end-to-end solution for the U.K.’s online market, but it also serves as the model which we will use to empower retailers and brands in establishing and building their e-commerce businesses across Europe.”
Zendor will bring to GSI as clients apparel retailers Peacocks.co.uk, Reiss.co.uk and RiverIsland.com, and toys and baby products retailers Woolworths.co.uk and ELC.co.uk
In announcing the acquisition plan, GSI cited figures from researchers IDC that business-to-consumer e-commerce in Europe is set to grow at a compound annual rate of 23% through 2010 compared to 12% for the U.S. IDC also notes that the U.K., in particular, leads with even higher per capita online retail spending than the U.S. ($2,171 vs. $1,831).
Nick Allen, CEO of Zendor, says the acquisition will support U.K. retailers and brands in their efforts to expand their e-commerce operations in the U.S. as well as across Europe. “Adding GSI’s leading technology to Zendor’s multi-channel expertise and fulfillment and customer care infrastructure will provide a fully integrated solution to U.K. retailers and brands,” Allen says. “As part of GSI, Zendor can now support U.K. retailers and brands in extending their e-commerce businesses in the U.S. and Europe.”
Under terms of the agreement, Zendor will become known as Zendor GSI Commerce, continue to operate out of its offices in Manchester, England, and report to GSI’s international headquarters in Barcelona, Spain. Zendor has 100 employees and operates a 50-seat customer care center and two fulfillment centers with a combined total of 245,000 square feet of space. GSI is acquiring Zendor from Manchester-based N Brown Group plc, which also owns other online retailing, financial services and marketing companies.
The acquisition, which has been approved by each company’s board of directors, is expected to close in mid-December.
GSI Commerce, based in King of Prussia, PA, says it posted net revenue over the last 12 months of $672 million. In September, GSI closed on its $97.5 million acquisition of Accretive Commerce Inc., a provider of e-commerce technology and fulfillment services formerly known as NewRoads.