Systemax to pay about $14 million for Circuit City
NEW YORK (Reuters) -Consumer electronics seller Systemax Inc will pay at least $14 million (9.2 million pounds) for the e-commerce business and intellectual property of bankrupt electronics retailer Circuit City Stores Inc, according to an adviser on the deal.
Systemax outbid "multiple strategic parties" and will pay $14 million cash, plus a share of future revenue generated from those assets over a 30-month period, according to Streambank LLC, an intellectual property consulting firm retained by Circuit City on the deal.
Systemax had been the "stalking horse," or lead bidder, for the assets, originally submitting a bid for $6.5 million in cash, plus a share of future revenue.
The company, which sells consumer electronics at CompUSA retail stores and TigerDirect.com, has said previously that it believed the transaction would allow it to continue building its online retailing business.
Gordon Brothers Brands and Hilco Consumer Capital, which specialise in brand name licensing, had said previously that they were also interested in bidding on Circuit City's assets, but they were not included in the multiple parties which eventually offered bids, according to Streambank.
Circuit City, which had been the No. 2 retail player in the U.S. consumer electronics space, filed for bankruptcy protection last November, but was forced to liquidate after failing to reach a deal to sell the company. The company has sold off its Canadian business, and had planned the sale of its website since it announced its liquidation.
The case is In Re: Circuit City Stores Inc, U.S. Bankruptcy Court, Eastern District of Virginia, No. 08-35653.
(Reporting by Chelsea Emery, editing by Matthew Lewis)
