ShopNow Stops Shopping, Starts Buying
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The deal includes $32 million in ShopNow.com (SPNW) common stock and $2 million in cash.
Dwayne Walker, ShopNow.com chairman and chief executive officer, said the acquisition would dramatically expand the number of businesses and merchants in ShopNow's commerce network.
"Clearly, by growing our commerce networks we anticipate an expansion in revenues from the increased number of e-commerce transactions we process and an increase in the number of licensed e-commerce enabled partners on our networks," Walker said.
"The company's e-commerce solutions include a business or merchant store builder, store hosting, secure shopping cart and a product catalog," Wilson said. "Unlike other services, a business or merchant can develop and host its e-commerce store site on the Freemerchant commerce network with no sign-up fees or monthly charges."
ShopNow.com plans to expand its e-commerce networks with the acquisition Freemerchant's more than 65,000 small business clients. It also intends to integrate Freemerchant's commerce technology into its existing networks to fulfill e-commerce enabling service demands.
ShopNow.com intends to move Freemerchant.com's operations from Emeryville, Calif., to its San Francisco office and retain as many employees as possible.