Apr, 2002 : Digital River Closes Beyond.com Acquisition
📅 - Digital River Inc. (digitalriver.com), a leading e-commerce outsource provider, announced on Sunday that it has closed its previously announced acquisition of certain assets and related liabilities of e-commerce technology and services provider Beyond.com Corporation (beyond.com).
According to the agreement, Digital River has acquired substantially all of the assets and customer contracts related to Beyond.com's eStores business in exchange for approximately $2.9 million in Digital River common stock, subject to certain escrow and sale restrictions and certain resale registration rights. Digital River says it is not assuming any of the liabilities of Beyond.com, aside from obligations included in the client contracts, which include industry software and digital commerce publishers.
Digital River says it expects the acquisition will not affect the company's earnings for the first quarter of 2002, and will add to its earnings in the second. The acquisition, says digital river, further solidifies the company's position among providers of e-commerce software and services.
Digital River says that as a result of the closing, the company increased its full year 2002 revenue guidance to $72 to $75 million. The company also announced that it expects earnings per share for the year, prior to amortization of the acquisition-related expenses and the previously unannounced first quarter charges, to be in the range of $0.23 to $0.25. After considering the impact of $2.5 million in first quarter charges related to pending litigation and the consolidation of one of its offices, says Digital River, the company expects earnings for share for the year, prior to amortization of expenses related to the new acquisition, to be between $0.15 and $0.17 for the year.
"This acquisition is a valuable addition to the Digital River platform," says Joel Ronning, Digital River's CEO. "It is squarely targeted at a market in which we have built critical mass and established Digital River as a leader in e-commerce outsourcing.?
Digital River says the company's penetration into the software publishing market is a testament to the successful outsourcing model Digital River has built. The company says it plans to continue using this model in pursuing software publishers not currently outsourcing, as well as other verticals including manufacturing and distribution.
According to the agreement, Digital River has acquired substantially all of the assets and customer contracts related to Beyond.com's eStores business in exchange for approximately $2.9 million in Digital River common stock, subject to certain escrow and sale restrictions and certain resale registration rights. Digital River says it is not assuming any of the liabilities of Beyond.com, aside from obligations included in the client contracts, which include industry software and digital commerce publishers.
Digital River says it expects the acquisition will not affect the company's earnings for the first quarter of 2002, and will add to its earnings in the second. The acquisition, says digital river, further solidifies the company's position among providers of e-commerce software and services.
Digital River says that as a result of the closing, the company increased its full year 2002 revenue guidance to $72 to $75 million. The company also announced that it expects earnings per share for the year, prior to amortization of the acquisition-related expenses and the previously unannounced first quarter charges, to be in the range of $0.23 to $0.25. After considering the impact of $2.5 million in first quarter charges related to pending litigation and the consolidation of one of its offices, says Digital River, the company expects earnings for share for the year, prior to amortization of expenses related to the new acquisition, to be between $0.15 and $0.17 for the year.
"This acquisition is a valuable addition to the Digital River platform," says Joel Ronning, Digital River's CEO. "It is squarely targeted at a market in which we have built critical mass and established Digital River as a leader in e-commerce outsourcing.?
Digital River says the company's penetration into the software publishing market is a testament to the successful outsourcing model Digital River has built. The company says it plans to continue using this model in pursuing software publishers not currently outsourcing, as well as other verticals including manufacturing and distribution.
Reads: 1432 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/dig040102.cfm
Want to add a website news or press release ? Just do it, it's free! Use add web hosting news!
📅 - 
📅 -