Global Sports Inc., King of Prussia, Pa., a developer of sports-related Internet commerce businesses, said it will acquire luxury goods e-tailer Ashford.com Inc., Houston, Reuters reported.
Under the terms of the merger agreement, Ashford.com shareholders will receive 0.0076 of a share of Global Sports common stock and $0.125 cash for each share of Ashford.com common stock, Reuters reported.
Global Sports expects to issue about 430,000 shares of common stock and pay about $7.1 million in cash in exchange for all of the outstanding shares of Ashford.com. Based on the closing price of Global Sports common stock on September 10, the transaction is valued at about $14.2 million, Reuters reported.
Global Sports anticipates that its sales and pro forma earnings in 2002 will exceed current expectations due to the positive impact from the acquisition, Reuters reported. Net revenue is now expected to exceed $200 million, and pro forma operating profit is now expected to exceed $11 million.