Online sales climbed 24% year over year, while Best Buy’s overall sales were flat.
E-commerce platform provider GSI Commerce agrees to buy e-Dialog in a cash and stock deal valued at more than $157 million.
E-commerce platform provider GSI Commerce Inc. has agreed to acquire e-mail marketing services provider e-Dialog in a cash and stock deal valued at more than $157 million. The acquisition and e-Dialog’s technology will expand on the e-mail functionality already offered on GSI’s platform through its marketing services arm, GSI Interactive.
GSI will work with its marketer partners, its in-house e-mail team and e-Dialog’s systems to migrate partners to e-Dialog’s e-mail technology platform over time, as appropriate to each partner’s business needs, according to GSI Commerce CEO Michael Rubin.
“Marketing services has been a key area of strategic focus of GSI, and e-mail marketing in particular is a very attractive business. It offers online marketers the highest ROI compared to any other marketing channel, according to the DMA, and is one of the fastest growing segments of online marketing,” Rubin says.
The Direct Marketing Association has forecast that marketers will increase spending on e-mail marketing by 25% this year over last year.
Under the agreement, GSI will acquire e-Dialog for $157 million including $147.8 million in cash and restricted shares of GSI Commerce valued at $9.2 million. GSI will make additional cash payment of $750,000 in fiscal 2009 if targeted revenue goals are met in fiscal 2008. The acquisition, already approved by the boards of directors of both companies and the shareholders of e-Dialog, is expected to close within 30 days.