Systemax Inc. Signs Stalking Horse Purchase Agreement for Circuit City E-Commerce Business
April 13 2009 - 3:30PM
Business Wire
Systemax Inc. (NYSE: SYX) today announced that it has signed a
�stalking horse� agreement to purchase selected assets of Circuit
City�s e-commerce business for $6.5 million in cash plus a share of
future revenue generated utilizing those assets over a 30 month
period. Systemax believes the transaction, if completed, would
further extend its position as a leader in online retailing of
value-priced, branded consumer electronics.
The agreement has been submitted for approval to the Bankruptcy
Court for the Eastern District of Virginia, Richmond, Division. On
November 10, 2008, Circuit City Stores, Inc. filed a petition for
reorganization under federal bankruptcy laws. Completion of
Systemax�s proposed acquisition of the assets is subject to both
approval by the Bankruptcy Court as well as the auction process,
and it will not be completed if a higher or better bid for the
assets is submitted and approved by the court. Systemax can provide
no assurances, therefore, that a transaction will be completed.
Should the ecommerce business be sold to another purchaser for a
higher or better price, or Circuit City terminates the auction,
Systemax will be entitled to break-up fees and expenses.
About Systemax Inc.
Systemax Inc. (http://www.systemax.com), a Fortune 1000 company,
sells personal computers, computer supplies, consumer electronics
and industrial products through a system of branded ecommerce web
sites, direct mail catalogs, relationship marketers and retail
stores in North America and Europe. It also manufactures and sells
personal computers under the Systemax and Ultra brands and develops
and markets ProfitCenter Software, a web-based, on-demand
application for multi-channel direct marketing companies.
Forward-Looking Statements
This press release contains forward-looking statements about the
Company�s performance. These statements are based on management�s
estimates, assumptions and projections and are not guarantees of
future performance. The Company assumes no obligation to update
these statements. Actual results may differ materially from results
expressed or implied in these statements as the result of risks,
uncertainties and other factors including, but not limited to: (a)
unanticipated variations in sales volume, (b) economic conditions
and exchange rates, (c) actions by competitors, (d) the
continuation of key vendor relationships, (e) the ability to
maintain satisfactory loan agreements with lenders, (f) risks
associated with the delivery of merchandise to customers utilizing
common carriers, (g) the operation of the Company�s management
information systems, and (h) unanticipated legal and administrative
proceedings. Please refer to �Risk Factors� and the Forward Looking
Statements sections contained in the Company�s Form 10-K for a more
detailed explanation of the inherent limitations in such
forward-looking statements.
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