E-commerce vendors GSI Commerce Inc. and Innotrac Corp. said today they have called off a merger that was announced in October. The companies say they mutually agreed to cancel the deal because of prevailing market valuations.
E-commerce platform provider GSI announced in October it would acquire fulfillment and customer service company Innotrac for $22 million in cash and $30 million in stock, or 1.84 million GSI shares at the then-prevailing price of $16.29 per share of GSI common stock. GSI’s shares are now trading at around $9. The deal also called for GSI to take on $61.9 million in Innotrac debt.
Neither company has any financial obligation to the other as a result of the deal being called off, the companies say.