GSI Commerce to Acquire Innotrac
E-commerce and multichannel solutions provider GSI Commerce Inc. signs a definitive agreement to acquire Innotrac Corporation, a provider of e-commerce fulfillment and customer care services, for $52 million. The acquisition is expected to close during the first half of 2009.
Innotrac operates eight facilities, including seven primarily used for fulfillment and one primarily used for customer care. The fulfillment facilities are located in Georgia, Illinois, Kentucky, Nevada and Ohio, and the customer care facility is located in Colorado. As of June 30, 2008, Innotrac had gross property and equipment of $49.9 million and net property and equipment of $17 million. The company serves more than 30 clients in the retail, telecommunications and direct marketing industries. Retail clients accounted for the largest percentage of the company's revenue in 2007 and include brands in the apparel, beauty, home, jewelry, entertainment, technology, toys and general merchandise categories. The company's clients include one of the 10 largest retailers in the United States.
The addition of Innotrac is predicted to increase GSI's client base and expand GSI's North American infrastructure and capacity. Following the close of the acquisition, GSI will operate approximately 4.7 million square feet of fulfillment centers and 2,165 call center seats. GSI intends to utilize the company's Reno, Nev. fulfillment center to begin offering regional fulfillment capabilities to its clients beginning in 2009.
Innotrac operates eight facilities, including seven primarily used for fulfillment and one primarily used for customer care. The fulfillment facilities are located in Georgia, Illinois, Kentucky, Nevada and Ohio, and the customer care facility is located in Colorado. As of June 30, 2008, Innotrac had gross property and equipment of $49.9 million and net property and equipment of $17 million. The company serves more than 30 clients in the retail, telecommunications and direct marketing industries. Retail clients accounted for the largest percentage of the company's revenue in 2007 and include brands in the apparel, beauty, home, jewelry, entertainment, technology, toys and general merchandise categories. The company's clients include one of the 10 largest retailers in the United States.
The addition of Innotrac is predicted to increase GSI's client base and expand GSI's North American infrastructure and capacity. Following the close of the acquisition, GSI will operate approximately 4.7 million square feet of fulfillment centers and 2,165 call center seats. GSI intends to utilize the company's Reno, Nev. fulfillment center to begin offering regional fulfillment capabilities to its clients beginning in 2009.