PFSweb Inc. and eCost.com, an online electronics retailer, are a step closer to merging. On Tuesday the shareholders of PFSweb approved the merger, which is expected to close next week.
Under the terms of the merger agreement, 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 where eCost.com will become a wholly owned subsidiary of PFSweb. In connection with the merger, PFSweb stockholders also approved the proposal to increase the number of authorized shares of PFSweb common stock from 40 million shares to 75 million shares.
As a result of the merger, the combined company can generate cost savings of approximately $4 million to $5 million per year, says PFSweb CEO Mark Layton.
As a wholly owned subsidiary, eCost.com will operate under the eCost.com name and maintain its headquarters in Torrance, Calif.
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