The retailer also lines up $225 million in additional funding.
Kevin Woodward , Senior Editor
Fanatics Inc. has completed its deal to acquire e-commerce operator Dreams Inc. and has raised new capital.
Fanatics says Insight Venture Partners invested $150 million in the company and that the retailer also has secured a $75 million line of credit. The funds will be used to support growth, Fanatics says.
Fanatics announced in April plans to buy Dreams, which operates FansEdge.com and multiple other branded sports merchandise e-commerce sites, in a deal valued at $183 million. Fanatics is an online licensed sports products retailer owned and operated by Kynetic LLC.
“The Internet allows for a significantly broader assortment of licensed sports merchandise to be sold to the consumer--especially to the displaced fan who is typically unable to purchase their favorite teams’ merchandise in local retail stores. As a result of this acquisition, Fanatics is even better positioned to deliver a superior customer experience for all sports fans,” says Alan Trager, CEO of Fanatics.
In addition to its Fanatics and FansEdge brands, the company operates licensed sports merchandise e-commerce sites for its partners, including major professional sports leagues, leading professional and collegiate team sites and sports apparel manufacturers. Following the close of the Dreams acquisition, Fanatics headquarters will remain in Jacksonville, FL. The company will also operate offices in the suburbs of both Philadelphia and Chicago.
Fanatics is No. 46 in the Internet Retailer Top 500 Guide .