RealTime IT News

SureFire Commerce to Acquire Stumpworld Systems

Canadian online transaction processing and e-commerce company SureFire Commerce Inc. signed a letter of intent to acquire Stumpworld Systems Inc. and its online shopping portal, BuyItOnline.com, and its store creation software platform, Online Merchant.

SureFire Commerce said it will issue 13.5 million shares in payment for the shares of Stumpworld, which marks the deal at roughly U.S.$45.6 million.

Established in 1993, Stumpworld specializes in enabling businesses and retail merchants to sell their goods and services online. BuyItOnline.com caters to a mass market of small- and medium-sized merchants.

The site features proprietary consolidation and deconsolidation functions allowing customers to shop at multiple independent stores in a single shopping session using a single shopping cart.

BuyItOnline.com currently hosts more than 200 individual stores and says it has hundreds of additional merchants queued to come online.

"This acquisition is the final phase of the implementation of our corporate strategy of offering true end-to-end e-commerce solutions to small- and medium-sized merchants, and is a first major step toward the proliferation of our presence into the United States," said Rory Olson, president and CEO of SureFire Commerce.

As a result of the transaction, SureFire said it expects to earn revenue from software sales, monthly hosting fees from merchants, a percentage of gross sales from each store, as well as fees from merchants using the proprietary online coop advertising, couponing and affiliate marketing programs.

"The synergies between the two companies from a product, services and management perspective create a formidable global force in the e-commerce enabling space," said Michael Clebnik, CEO of Stumpworld.

SureFire offers businesses end-to-end electronic commerce solutions using proprietary technology in the areas of transaction processing and merchant enabling.