Digital River Agrees to Acquire Assets of Beyond.com Corporation
MINNEAPOLIS, MN, January 25, 2002--Digital River, Inc. (Nasdaq: DRIV), a leading global e-commerce outsource provider, today announced it has agreed to acquire substantially all of the assets and customer contracts related to the eStores and Government Systems Group businesses of Beyond.com Corporation (Nasdaq: BYND), a leading provider of e-commerce technology and services. The acquisition would further solidify Digital River`s e-commerce leadership position among software and digital commerce publishers and expand the company`s presence in the government sector.
"Digital River continues to demonstrate its e-commerce leadership, expanding market opportunities, attracting industry-leading clients and delivering a world-class e-commerce system," said Joel Ronning, Digital River`s CEO. "We are looking forward to extending our e-commerce expertise to the clients of Beyond.com and are committed to providing them an exceptional level of service."
As part of the acquisition, Beyond.com has filed for chapter 11 bankruptcy protection. The acquisition is subject to bankruptcy court approval and certain other conditions. Under the terms of the agreement, Digital River is not assuming liabilities of Beyond.com other than obligations under the Beyond.com client contracts. Digital River has agreed to acquire substantially all of the assets and customer contracts related to the eStores and Government Systems Group businesses in exchange for $3.5 million in cash and $7.5 million in Digital River common stock, subject to certain escrow and sale restrictions and certain resale registration rights. The agreement also provides Beyond.com an earn-out for an additional $1.5 million in Digital River common stock, and provides for purchase price reductions in certain events. Further terms of the acquisition were not disclosed.
"Beyond.com selected Digital River based on, among other things, its e-commerce experience, customer service record and financial strength," said Ron Smith, president and CEO of Beyond.com Corporation. "This agreement should ensure that our eStore and government clients will continue to receive high-quality technology and services from a truly industry-leading company."
About Beyond.com Corporation
Beyond.com Corporation is a leading provider of e-commerce technology and services. The company builds, manages and markets online stores (eStores) for businesses. Beyond provides a full suite of marketing programs and services to help maximize clients` eStore sales activities and revenues. The company also sells software and computer-related products to the government and consumer markets. Beyond.com Corporation trades on the Nasdaq National Market under the symbol "BYND." More information on the company can be found in its filings with the Securities and Exchange Commission (SEC), or by visiting http://www.beyond.com.
About Digital River
Founded in 1994, Digital River is a leading global e-commerce outsource provider, offering more than 13,000 companies complete e-commerce systems and services. The company`s world-class infrastructure and professional services are proven to grow businesses quickly and profitably while reducing risk. Digital River`s commerce services include e-commerce strategy, site development and hosting, order and transaction management, system integration, product fulfillment and returns, e-marketing and customer service. Digital River`s clients include Symantec, Fujitsu, 3M, Siemens, Polaris, Major League Baseball, Novell, Autodesk, SONICblue, Adaptec and Staples.com. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.
Forward-Looking Statements
Except for the historical information contained herein, this press release contains forward-looking statements, including statements containing the words, "believes," "anticipates," "expects," and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: the Company`s limited operating history and variability of operating results; competition in the electronic commerce market; and other risk factors referenced in the Company`s public filings with the Securities and Exchange Commission.
Digital River is a registered trademark of Digital River, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners
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