September 21, 2001
Global Sports to Buy Ashford.com
Ashford.com, the online luxury retail site, has entered into a definitive merger agreement with Global Sports Inc., an outsource solution provider for e-commerce, where Global Sports will acquire all outstanding shares of Ashford.com stock.
Ashford.com stockholders will receive 0.0076 of a share of Global Sports common stock and $0.125 cash for each share of Ashford.com common stock. Based on the Sept. 10 closing price of Global Sports common stock, the transaction is valued at $14.2 million. The deal is expected to close in late 2001 or early 2002 and is subject to the satisfaction of certain closing conditions including approval by Ashford.com stockholders.
Once the deal is completed, Global Sports plans to extend its outsource e-commerce solution to retailers in the luxury goods category and expand Ashford.com's e-commerce outsource solution in the corporate gifts category.
Global Sports develops and operates e-commerce businesses for retailers, media companies and professional sports organizations. Its platform includes Web site design and development, e-commerce technology, customer service, fulfillment and other e-commerce services.
In other news, Target Corp. plans to open a store on Amazon.com beginning later this fall, the company reports. The deal will expand the product offerings at Amazon.com to include thousands of apparel, home, electronics and jewelry products. The companies have agreed to a five-year strategic alliance where Amazon.com will receive per unit fees and annual fixed fees. Target will use Amazon.com's complete solution of e-commerce technology services, order fulfillment and customer care services for its current online properties including Target.com, MarshallFields.com, Mervyns.com and GiftCatalog.com beginning in summer 2002.
- by Julia M. Duncan