Key Developments For GSI Commerce, Inc.
GSI Commerce, Inc. (GSIC.O) (Nasdaq)
GSI Commerce, Inc. Provides e-commerce Technology To Mattel
GSI Commerce, Inc. announced that it has signed a multiyear agreement to provide Mattel with e-commerce technology, fulfillment, customer care and marketing services. GSI recently launched four specialty Web stores for the company, including Barbie, Hot Wheels, Disney and another site featuring interactive games from Mattel. Mattel has chosen TrueActionTM, GSI`s digital agency, to provide affiliate marketing through its Pepperjam Network and design services through its Silverlign division. GSI`s e-mail marketing subsidiary, e-Dialog, has been selected to provide e-mail marketing services.
GSI Commerce, Inc. Closes Acquisition of Retail Convergence Inc.
GSI Commerce, Inc. announced that it has closed its acquisition of Retail Convergence Inc.
GSI Commerce, Inc. To Acquire Retail Convergence
GSI Commerce, Inc. announced that it has signed a definitive agreement to acquire Retail Convergence Inc. (RCI), a Boston, Mass.-based company that operates RueLaLa.com, a leader in the private sale space and SmartBargains.com, an off-price e-commerce marketplace. The transaction is valued at up to $350 million, including $180 million at closing (50% cash, 50% stock) and an earn-out of up to $170 million. To reach the maximum earn-out, RCI will need to achieve non-GAAP income from operations (commonly referred to as adjusted EBITDA) of $51.9 million in fiscal year 2012 (a complete description of the earn-out is contained later in this release). At the end of September 2009, RCI had cash of $7.5 million and no debt. In 2010, RCI is expected to generate at least $230.0 million of revenue, $7.0 million of income from operations and $15.0 million of non-GAAP income from operations.
GSI Commerce, Inc. Issues FY 2009 Guidance
GSI Commerce, Inc. announced that for fiscal 2009, it expects a modest increase in net revenues compared to fiscal 2008, Income from operations to be at least $3.0-$7.0 million and non-GAAP income from operations to increase by at least 15%-20% compared to fiscal 2008 which implies a minimum of $94.0-$98.0 million. The guidance assumes the acquisition of Retail Convergence closes within 30 days. The Company reported revenues of $966.93 million and EBIT of $13.78 million in fiscal 2008.
IC Companys Selects GSI Commerce, Inc. As European E-Commerce Partner
GSI Commerce, Inc. announced a long term partnership with IC Companys, the Denmark based, multichannel fashion group. IC Companys consists of 11 fashion apparel brands including Peak Performance, InWear, and Matinique, with stores in 16 countries across Asia, North America and Europe. Under the agreement, GSI will provide an integrated e-commerce solution that includes design, web technology, order processing, fulfillment and call center services. New Web sites and operations are to be launched for consumers in several countries throughout Europe, initially including Denmark, Sweden and Finland. GSI also has the right to provide web technology, order processing, fulfillment and call center services for IC Companys' Web stores for customers in several other European countries, including UK, Germany, Spain and Italy, should IC Companys elect to expand to these countries.
