A new forecast from Forrester Research credits greater online spending by Canadians, lower shipping costs and more selection for the spending increase.
As a result, the company will be entirely privately held and no longer trade on the Nasdaq.
Digital technology, fulfillment and contact center vendor Innotrac Corp. has agreed to be acquired by private equity firm Sterling Partners. Sterling Partners will acquire all outstanding shares of Innotrac for $8.20 each, the vendor says. As a result, Innotrac will be entirely privately held and no longer trade on the Nasdaq exchange. The transaction is expected to close in the first quarter of 2014.
There are 13.25 million shares of Innotrac outstanding, putting the value of the deal at nearly $109 million.
“We believe that Sterling will be a strong strategic partner to help us continue to service our customers with the best-of-breed services they have become accustomed to,” Innotrac chairman and CEO Scott Dorfman says.
The sale to Sterling Partners gives shareholders a better deal than they would receive selling their stock and to position Innotrac for future growth, Innotrac chief financial officer Steve Keaveney says.
Innotrac’s management team will remain in place, the companies say.
The news comes as the vendor also announces its latest quarterly earnings results. For the third quarter ended Sept. 30 2013, Innotrac reports:
- Total revenue was up 16%, to $29.8 million from $25.7 million in the same period last year.
- Net income was up 1,582%, to $18.5 million from $1.1 million in Q3 2012.
- Operating income was up 10%, to $1.31 million from $1.19 million in Q3 2012.
For the first nine months of 2013 ended Sept. 30, Innotrac reports:
- Total revenue was up 21.3%, to $88.3 million from $72.8 million in the same period last year.
- Net income was up 920%, to $20.4 million from $2.0 million last year.
- Operating income was up 58.6%, to $3.49 million from $2.20 million last year.
Innotrac didn’t comment on what caused its large year-over-year increases in net income for the third quarter and nine months.
Innotrac provides fulfillment services to seven of the Top 1000 online retailers ranked in the Internet Retailer Top 500 and Second 500 guides.