GSI Commerce Inc. is either adding functionality to its services, removing a bit of the competition, or both, as the company announced its plans to acquire Accretive Commerce Inc., a Huntersville, N.C.-based e-commerce solutions provider.
Under the definitive agreement, which has been approved by the board of directors of both companies, GSI will acquire Accretive for $97.5 million in cash. The acquisition will expand GSI's partner base to nearly 80 and is expected to close within 60 days.
As of August 4, 2007, Accretive Commerce had cash and marketable securities, net of debt, amounting to $6.4 million. Founded in 1995, Accretives roster of partners draws primarily from the merchandise categories of apparel, home, health and beauty, and specialty foods. On a trailing 12-month basis through June 30, 2007, Accretive Commerce recorded net revenue of $83.6 million, income from operations of $4.9 million and adjusted EBITDA of $6.5 million.
GSI expects to incur integration-related operating expenses of $10 million to $12 million and capital expenditures of $10 million to $15 million, in the aggregate, beginning in the late third quarter of fiscal 2007 and carrying through the end of fiscal 2008, primarily related to systems migration activities.