ShopNow.com Inc. Friday acquired
application service provider Freemerchant.com for approximately
$34 million.
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.
Serge Wilson, Freemerchant.com chief executive officer and founder, said
its award-winning e-commerce platform for small businesses would fit well
into ShopNow’s business-to-business portfolio.
“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.
