PC Mall Acquires eCOST.com from PFSweb
February 22 2011 - 8:00AM
Business Wire
PFSweb, Inc. (Nasdaq: PFSW), an international business
process outsourcing provider of end-to-end e-commerce solutions,
today announced that it has completed the sale of certain assets of
eCOST.com to a new subsidiary of PC Mall, Inc. (Nasdaq: MALL) for
$2.3 million.
In addition, PC Mall has contracted with PFSweb to provide a
variety of e-commerce services, including IT and customer care, to
support PC Mall’s newly acquired eCOST.com operations on a
temporary basis. PFSweb will earn service fee revenues for the
services provided to PC Mall, which are in addition to the payments
from the asset sale.
Mark Layton, Chairman and Chief Executive Officer of PFSweb,
stated, “Over the past five years, our ownership of the eCOST.com
business has provided us invaluable experience at the frontier of
web commerce retailing and we have benefited in knowledge and in
technology capabilities that we have successfully seeded throughout
our PFSweb business. This experience has allowed us to markedly
improve and expand the services we provide our Service clients, and
has helped us develop what is now our End2End e-commerce solution.
As a result of these advancements, we have significantly expanded
our client base and are better suited to support companies in
multiple industries which are expected to lead the next wave of
e-commerce growth, including fashion, apparel and accessories,
beauty and fragrance and consumer packaged goods.
“By divesting the eCOST.com business, we gain greater ability to
focus our attention on growing the Services business, where we
believe our expertise in e-commerce services and existing
infrastructure can maximize revenue and profit opportunities,”
concluded Mr. Layton.
The purchase price included inventory and intangible assets.
PFSweb is expected to record a write-down of its eCOST.com related
intangible assets of approximately $3 million in the fourth quarter
of 2010 and is expected to incur certain additional transaction
related costs in the first quarter of calendar year 2011.
Craig-Hallum Capital Group acted as the exclusive mergers and
acquisitions (M&A) advisor for PFSweb on the transaction.
About eCOST.com
eCOST.com is a leading multi-category online discount retailer
of high-quality new, "close-out" and manufacturer recertified
brand-name merchandise for consumers and small to medium size
business buyers. The eCOST.com brand markets approximately 260,000
different products from leading manufacturers such as Sony,
Hewlett-Packard, Denon, JVC, Canon, Nikon, Panasonic, Toshiba,
Microsoft, Garmin, Braun, Sharp, Cuisinart, Bissell and Hoover
primarily over the Internet and through direct marketing.
About PC Mall, Inc.
PC Mall, Inc., through its wholly-owned subsidiaries, is a
leading value added direct marketer of technology products,
services and solutions to small and medium sized businesses,
mid-market and enterprise customers, government and educational
institutions and individual consumers. PC Mall’s brands
include: PC Mall, PC Mall Gov, Sarcom, MacMall, Abreon, NSPI
and OnSale. In the twelve months ended December 31, 2010, PC
Mall generated $1.4 billion in revenue and has over 2,600
employees, over 65% of which are in sales or service
positions. For more information please visit
www.pcmall.com/investor or call (310) 354-5600.
About PFSweb, Inc.
PFSweb develops and deploys comprehensive end-to-end eCommerce
solutions for Fortune 1000, Global 2000 and brand name companies,
including interactive marketing services, global fulfillment and
logistics and high-touch customer care. The company serves a
multitude of industries and company types, including such clients
as P&G, LEGO, Carter's, AAFES, Riverbed, InfoPrint Solutions
Company, Hawker Beechcraft Corp., Roots Canada Ltd. and Xerox.
To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit the
company's website at http://www.pfsweb.com.
The matters discussed herein consist of forward-looking
information under the Private Securities Litigation Reform Act of
1995 and is subject to and involves risks and uncertainties, which
could cause actual results to differ materially from the
forward-looking information. PFSweb's Annual Report on Form 10-K
for the year ended December 31, 2009 and Quarterly Report on Form
10-Q for the nine months ended September 30, 2010 identify certain
factors that could cause actual results to differ materially from
those projected in any forward looking statements made and
investors are advised to review the Annual and Quarterly Reports
and the Risk Factors described therein. PFSweb undertakes no
obligation to update publicly any forward-looking statement for any
reason, even if new information becomes available or other events
occur in the future. There may be additional risks that we do not
currently view as material or that are not presently known.
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