PFSweb signs letter of intent to merge with eCost.com
PFSweb Inc., a global provider of fulfillment and other services to online retailers, and ECost.com, a leading online discount retailer, have signed a non-binding letter of intent to merge.
Under terms of the proposed merger, PFSweb will issue to eCost.com shareholders one PFSweb common share for each outstanding share of eCost.com in a tax-free, share-for-share transaction. ECost.com—which spun off from PC Mall in April—will become a wholly owned subsidiary of PFSweb.
For the 12 months ending Sept. 30, eCost.com reported revenue of $192.4 million. PFSweb’s and eCost.com’s combined revenue for that period is $528 million.
PFSweb warehouses, manages and fulfills more than $1.6 billion annually in merchandise and transactions from distribution facilities worldwide. ECost.com, formerly part of PC Mall Inc., is a multi-category online discount retailer of new, closeout and refurbished products, offering more than 100,000 brand name products including computer hardware and software, home electronics, digital imaging, jewelry, housewares, DVDs, and video games.
“The combination of eCost’s 1.3 million total customers, broad product offering, merchandising, and direct marketing expertise with PFSweb’s advanced distribution and fulfillment engine and IT capabilities will bring together the core strengths of both organizations,” said Mark Layton, PFSweb CEO.
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