* To pay $170 mln more by 2012 if some targets are met
* Says deal to add to adj 2010 earnings
* Sees Retail Convergence generating $230 mln rev in 2010
* Q2 loss $0.18/shr vs loss $0.30/shr year-ago
Oct 27 GSI Commerce Inc GSIC.O said it agreed
to buy e-commerce company Retail Convergence Inc (RCI) for $180
million in cash and stock, to strengthen its online sales
GSI will also make a delayed payment of $170 million if
Boston-based RCI meets certain performance targets through
The transaction is expected to add to GSI's adjusted
earnings in 2010 and Retail Convergence is expected to generate
$15.0 million of non-GAAP income from operations with revenue
of $230 million in 2010, GSI said.
RCI operates RueLaLa.com and SmartBargains.com, an
off-price e-commerce marketplace.
GSI also posted a narrower quarterly loss, helped mainly by
an increase in service fee revenues, and said it expects a
modest increase in fiscal 2009 net revenue from last year.
Net loss for the third-quarter was $9.4 million, or 18
cents a share, compared with $14.2 million, or 30 cents a
share, a year ago.
Revenue for the quarter was $190.3 million, up 2 percent
from last year.
Analyst's on average had expected a loss of 30 cents a
share, on revenue of $185 million, according to Thomson Reuters
Shares of GSI closed at $20.96 Tuesday on Nasdaq.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by