Global Sports is acquiring Ashford.com
King of Prussia, PA-based Global Sports Inc., a leading outsource solution
provider for e-commerce, has agreed to buy Houston-based luxury goods retailer Ashford.com. Global Sports will acquire all outstanding shares of Ashford.com in a stock and cash transaction valued at $14.2 million. Ashford says that at the end of June, Ashford had a value of $27.9 million, including $8.6 million in cash, cash equivalents and accounts receivable and $18.4 million in inventory.
Global Sports expects the merger to have a positive impact on its sales and pro forma earnings in 2002 and expects to exceed analysts’ projections. Net revenue is now expected to exceed $200 million, up from $185 million. Pro forma operating profit is now expected to exceed $11 million, up from $10 million.
Following the completion of the merger, Global Sports intends to extend its
outsource e-commerce solution to retailers in the luxury goods category and
expand Ashford.com’s e-commerce outsource solution in the corporate gifts
category. Ashford.com already manages e-commerce corporate gifts programs
for several Fortune 500 companies. Ashford.com will become the 24th
e-commerce web site to run on Global Sports’ e-commerce platform and the
first within the luxury goods category.
Under the agreements, all Ashford.com employees are guaranteed employment until February. At that time, the new owners will decide any management or staffing changes, Global Sports says.
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