GSI Commerce to Acquire Fanatics for $277M
(Benzinga Lightning Feed Via Acquire Media NewsEdge) GSI Commerce Inc. (Nasdaq: GSIC) today announced that it has signed a definitive agreement to acquire Fanatics, Inc., an online retailer of licensed sports merchandise.
Fanatics operates over 250 e-commerce websites, including www.footballfanatics.com, and over 60 e-Commerce stores for collegiate and professional sports partners and media organizations. The combination of Fanatics with GSI's online licensed sports merchandise business, which operates the official e-commerce websites for NFL, NBA, NHL, MLB, NASCAR and ESPN, will create a leader in the online licensed sports merchandise industry.
The transaction is valued at approximately $277 million, including $171 million of cash and $106 million of GSI common stock, which consists of approximately 4.8 million shares based on the volume weighted average price on Feb. 8, 2011 of $22.20. As of Dec. 31, 2010 Fanatics had cash of $41.8 million and no debt. Fanatics had net revenues and non-GAAP income from operations (�NGIO�) in 2010 of $186.3 million and $23.8 million, respectively.
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