January 29, 2009, 12:00 AM

E-commerce vendors GSI Commerce and Innotrac call off merger deal

E-commerce platform provider GSI had announced in October it would acquire fulfillment and customer service company Innotrac for $22 million in cash and $30 in stock.

E-commerce vendors GSI Commerce Inc. and Innotrac Corp. said today they have called off a merger that was announced in October. The companies say they mutually agreed to cancel the deal because of prevailing market valuations.

E-commerce platform provider GSI announced in October it would acquire fulfillment and customer service company Innotrac for $22 million in cash and $30 million in stock, or 1.84 million GSI shares at the then-prevailing price of $16.29 per share of GSI common stock. GSI’s shares are now trading at around $9. The deal also called for GSI to take on $61.9 million in Innotrac debt.

Neither company has any financial obligation to the other as a result of the deal being called off, the companies say.

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