Golf Galaxy, Inc. (Nasdaq: GGXY – News), the interactive golf superstore offering Everything for the Game®, has completed its acquisition of The GolfWorks®, one of the golf industry's most complete sources for golf club components, clubmaking tools and supplies, and technical information.
The purchase price, excluding direct costs of the acquisition, consisted of a combination of $3.7 million in cash; 250,862 shares of Golf Galaxy common stock valued at $4.8 million based on the average closing price of Golf Galaxy's common stock on the NASDAQ Global Market during a five-day trading period beginning three trading days prior to the announcement of the acquisition on Feb. 15; and warrants to purchase 150,000 shares of Golf Galaxy common stock with a fair value of $1.4 million, determined using the Black-Scholes option pricing model. In addition, Golf Galaxy assumed $5.4 million in debt from The GolfWorks.
